Whether you run a small, medium or large business, you will undoubtedly need different legal arrangements Small business matters. Some tasks you can do yourself, others you need a lawyer. As a general rule, the larger your company, the more employees you have, the more likely you are to hire a lawyer.
When and how to hire a lawyer Small business matters
The first thing to decide is that you really need a lawyer. They cost hundreds of dollars per hour, so if you’re like me, you’ll want to avoid that expense. Of course, while you can hire an attorney to handle many of the legal aspects of your business, there are many legal issues. Small business matters You can handle it yourself with a little research. Some examples are:
- Establish a basic business structure.
- Applying for an Employer Identification Number (EIN).
- Submitting IRS forms.
- Getting a domain name for your company.
It goes without saying Small business matters Filing a lawsuit will probably require an attorney. Avoid all costs by getting things right from the start. It is a good plan to establish a relationship with a lawyer before you start a new company.
Cliff Inico, attorney and author of The Small Business Survival Guide, puts it succinctly and accurately: “If you’re getting sued, it’s too late.” He further advises that once you are in the court system, it is difficult and expensive to get out.
When you decide you need a lawyer for you Small business mattersDo a few interviews to find the right match. Create a list of questions in advance so you don’t get stuck during the interview.
It is a good idea to find an experienced attorney who has connections with other attorneys who can help if necessary. Make sure you hire an attorney who knows your industry well and other clients in that arena. Having said that, avoid representing any aggressive competitors.
While your list of questions is important, it’s also a good idea to gauge his or her communication skills. A good lawyer should be able to explain complex legal issues in a way that is easy to understand, which will help you prevent problems before they arise.
One key legal decision you need to make before you get started is which business structure is best for your needs. If you do a little research, you can set up an LLC, S or C corporation yourself. Or you can hire a lawyer to help you prepare it. They usually charge a one-time fee.
There are different pros and cons to each option, so be sure to do your homework before settling on a structure. For example, while a sole proprietorship is cheaper and easier to set up, you are personally liable for all debts and lawsuits. On the other hand, with an LLC, you’re protected if someone sues you, but there are fees to pay and the paperwork can be confusing.
Be sure to determine the licenses and permits you may need when creating a new company. Also, don’t forget to consider any zoning regulations that may apply.
As a business owner, you may need different contracts to protect you. Small business matters. It is wise to hire an attorney to help you create these, so you are well protected. Some common contracts you may want to look for include:
- Nondisclosure Agreement (NDA)
- Partnership agreement
- Independent contractor contract
- Customer contract
If you have any proprietary information that you plan to share with anyone, an NDA is what you need. Examples might include a freelance ghostwriter for a book you’re hiring, or your customer database that you plan to share with employees. Along those lines, you might consider asking your employees to sign a non-compete agreement assuring them that they can’t try to steal your customers.
You need a good partnership agreement to protect you Small business matters If you plan to run your business with someone else, even if that person is your best friend. Every aspect of your presentation should be written. A few examples would be:
- What each person does and what each one has to contribute.
- To whom the dividend is paid.
- How decisions are made
- How to resolve disputes.
- What happens if the partnership breaks up?
If you plan to outsource to independent contractors, you need a good one Work for rent Contract templates. You’ll need to customize it for each job and contractor based on the services required, but having a template will save time later.
Customer contracts should be complete and clear, but not too long and complicated. It’s a fine line. Do your best to disclaim any warranties your client might naturally expect, and be sure to include a clause requiring arbitration in the event of a dispute.
Hire your first employee
If you plan to hire full-time employees, you need to research and comply with state and federal regulations. Of course, if you only need to hire independent contractors, you don’t need to go through the following steps. It’s important to know the difference in order to manage your employment taxes properly. When you hire employees, you need to apply for an Employment Identification Number (EIN) so you can file reports with your state agencies and pay taxes.
Next, you’ll need a system to record all the employment taxes you’ve deducted. You need to keep this information for at least four years. These records will help you in the future to track your progress and track costs that you can reduce later. You must file IRS Form 941 every quarter, so each employee is credited for the taxes withheld from their paycheck.
Have each employee complete an I-9 form within three days of being hired, certifying their eligibility to work legally in the United States. As their employer, you must keep this Form I-9 on file for at least three years after you were hired or, if you fired them, for one year after that event.
to avoid Small Business Matters yYou will then need to report your new employee to your state directory. For a list of new hire reporting centers, see this list of state agencies: https://www.sba.gov/content/new-hire-reporting-your-state
And finally, carry workers’ compensation insurance and place posters in the workplace, informing workers of their rights in this area.
As a new business owner, avoid Small business matters It’s important to keep up with all of your basic legal concerns from the get-go. It can be tempting to push them off until later, but if things are set up right from the start, you’ll see that your company runs smoothly. As Ben Franklin said, “An ounce of prevention is worth a pound of cure.”