How an attorney can help when starting a North Carolina business
This article looks at why it is important to talk to an attorney when starting a new business in North Carolina.
According to the Small Business Administration, nearly 98 percent of businesses in North Carolina are small businesses and 46 percent of North Carolina employees work at small businesses. Furthermore, as the North Carolina Department of Commerce notes, North Carolina has routinely been ranked as one of the best states in the nation to start a business.
One of the most important professional’s new entrepreneurs can have on hand is a business attorney. Unfortunately, many new business owners only contact an attorney after a legal problem arises, such as when a dispute arises between business partners or with a client. Below is a look at how new North Carolina businesses can benefit from the counsel of an experienced business law firm.
Choosing a business structure
This is one of the most important business decisions any entrepreneur will have to make. Different business structures have different liability and tax implications, which could have a drastic impact on the potential of a business to grow in the future. A sole proprietorship, for example, is very easy to setup, but comes with a large amount of liability risk, meaning that if a claim is made against the business then the business owner’s personal assets could be at risk. A corporate structure, on the other hand, if properly set up, shields the business owner from personal liability as to their personal assets.
Drafting agreements and contracts
Many business owners only talk to a business attorney once a dispute has arisen, usually with a fellow business partner, employee, or client. Such disputes, especially if they end up in court, can be very costly. Many of these disputes are the result of poorly written or non-existent business contracts and agreements. An attorney can help new business owners draft business start-up agreements, including employment contracts, buy-sell agreements, partnership agreements, shareholder agreements, and so forth to provide greater peace of mind. An attorney can also help draft and review any business contract.
Complying with the law
Businesses must comply with a maze of laws and regulations, including environmental, work safety, tax, and employment laws. These laws and regulations can be notoriously complex and most business owners may not be aware of all of their legal and regulatory obligations. However, ignorance of the law is no protection from the fines and penalties that can result from violating it. That is why business owners need a business attorney on hand to ensure they are compliant with all the rules and regulations that may affect their businesses.
Talk to an attorney today
Entrepreneurs should be focused on growing their business and protecting that business by getting good legal guidance up front. By talking to an attorney today, new business owners will have the advice they need to setup a business for success.