Globally, more than 300 million startups are created each year. These astounding numbers may make it seem like there's always an influx of new business competition. While that's partially accurate, most of those businesses won't be around for very long.
Unfortunately, up to 90% of startups will fail.
If you want to help ensure your new company is among the 10% success stories, you'll want to hire a lawyer. Specifically, you'll want to hire a business attorney for the five big reasons below.
As a new business, you'll need to understand the full scale of your tax liability.
What taxes your business will owe depends on numerous factors, including the state you reside in and your chosen business structure. A knowledgeable business attorney can ensure your taxes are in order, so you never end up on bad terms with the IRS.
Are you going into business with a partner? If so, you'll want to use a business attorney to draw up a partnership agreement that outlines the specifics of ownership, profit sharing, legal liability, and division of responsibility.
An iron-clad partnership agreement protects both parties from future problems.
Finding a creative name and the perfect location for your business aren't the only big first steps you need to accomplish before launch. You'll also need to create your business structure, which will play a significant part in the development of your overarching business plan.
There are four common business structure types you might choose from, each with its own pros, cons, and limitations. They include:
Businesses need various types of insurance to protect them against lawsuits. For example, you'll need liability insurance to protect against personal injury claims and commercial property insurance to protect your physical store or office.
You may also need to insure vehicles, equipment, and various physical property types used in your daily operations.
Unfortunately, there isn't a single form of insurance that covers all of a company's unique needs, making it easy to miss something crucial. Thankfully, business lawyers work with these types of insurance regularly and can help you make the best decisions for your new company.
Having a business attorney on hand to ask questions and offer legal advice from the beginning is an excellent idea.
Having dedicated legal support can help you make the best (and most profitable) decisions for your startup and avoid costly mistakes along the way.
Make sure your startup business lands among the 10% success stories by taking the proper legal steps with the help of a business attorney today. Hire a lawyer you can trust with your new business by contacting Calhoun Meridith.