Why Does a Business Need a Business Law Attorney?
The Orlando Law Group is committed to serving businesses and working with them to make them successful. In fact, The Orlando Law Group has always been very entrepreneurial with our founder and attorneys owning multiple businesses in a wide range of industries, not just the legal field.
As the firm’s director of business law services, I’m here to guide our clients throughout their business, from the formation of an idea to a successful exit from the company. Just like all of the attorneys at The Orlando Law Group, I look to be a partner in our clients’ businesses, helping owners avoid costly issues before they become a problem.
Indeed, I look to be that first call (before problems strike) and not the last call (after problems strike).
While every business is different, all business law generally lies in four broad categories:
- · Business Formation
- · Business Transactions
- · Business Management
- · Business Transfer
Wherever you are in the lifecycle of your business, The Orlando Law Group is here to help you and provide counsel. But let us take a deeper look at some of the issues you might encounter when a business law attorney is vital.
Business Formation
Have a business idea? Thinking about starting a business? Then reach out to a business law attorney to discuss the right business structure for you.
We talked about business structure in our last article, but let’s go a bit deeper into two of the more common business structures.
Partnerships: Many people have the dream of opening a business with a friend. Perhaps the partnership is with a family member – or a spouse. Forming a partnership is relatively simple – just two or more individuals must agree on the business purpose and how that business achieves that purpose. Although a partnership can be very informal, there are issues that may complicate things. First off, there are a wide range of types of partnerships to consider. Plus, any written partnership agreement (although not required) should clearly outline a significant number of hypothetical situations, like what happens if a partner suddenly dies or there is a divorce. Without a solid legal outline, much larger problems can happen down the road.
Limited Liability Company: This is one of the more popular types of business structures. Despite being more formal than a partnership, LLCs are relatively easy to start. Registering your business and filing Articles of Incorporation with your respective Department of State may be the minimum requirements, but not the only thing that should be done. A limited liability company should also have an operating agreement and other binding agreements in place. By forming an LLC, owners generally avoid personal liability – meaning you are not on the hook for your business’ liability. There are also tax implications a business owner should consult an accountant about before choosing this structure for their business.
At business formation, in addition to identifying the proper business structure, business owners should look at trademarks and copyrights. And, before talking about a business idea, make sure to have a good non-disclosure agreement for other people to adhere to.
Business Transactions
Everyone gets into business to make money, right? And at the core of a profitable business are the contracts for services, products and other aspects.
If a business provides a service, does it have proper wording in its contract about the length of the engagement, the renewal process and termination? Is the work product protected or is it the property of the client when the contract ends? Does the contract clearly outline the services provided?
If a business sells a product, does its sales agreements have a warranty or return policies? Does it outline what damage is covered and is there protection against injuries that might arise due to the product?
There is a reason why almost all sales include “terms of agreement.” It’s because the sales contract is essential for a business.
Of course, there are many more aspects to the business transaction realm. Collections, negotiating contracts, failures to perform and much more are handled by a business law attorney.
Business Management
The day-to-day management of the company, particularly with human resources and dealing with employees can be troublesome for many businesses.
If a business does not have an employment contract ready for all employees, it’s essential to start working with a business law attorney today. Similarly, if a business uses independent contractors, having a contract that clearly outlines roles and responsibilities is essential.
Both employees and contractors are often places where lawsuits are prone to arise primarily because the terms of the relationship were not clearly outlined before starting the relationship.
Finally, with the possibility of non-compete clauses ending soon, does the business have a strong non-disclosure agreement so employees and contractors cannot use trade secrets when they leave?
Likewise, what is the contractual relationship with a business’ suppliers and vendors? Does the contract clearly state when payment is due and what happens if the vendor/supplier fails to perform? Is there an internal process for purchase orders? What protections does the business have for a vendors’ collusion with competitors?
A business lawyer is essential for all of these aspects of managing a business.
Business Transfer
All good things must come to an end, right?
A founder’s role in their business will end eventually, but the question will always remain whether the business continues after the initial founder leaves. After all, statistically, only one in four businesses survive past the first generation of owners.
Working with a business lawyer can be a great way to be among the 25 percent who do survive.
Much of the effort happens when a business is started, particularly with partnerships and other forms of business structure. Hopefully, when the business was formed, much of the terms of ending the business were discussed and agreed upon.
If not, a business attorney can help negotiate an exit, whether it is by putting the company in a trust, having a partner buy another one out or any other type of exit.
The key here is to ensure all legal documents are as clearly laid out as possible as ending a relationship can easily be a place where issues can arise.
We are here to help
The Orlando Law Group is celebrating its 15th anniversary this year. During that time, our attorneys and the entire firm have focused on helping business owners throughout Central Florida, particularly those small- and medium-sized businesses that are found throughout our community.
These types of services are what I specifically work through every day, helping business owners prevent problems from happening instead of waiting until they become problems to deal with.
If you think you need assistance, please reach out to me and let us review your unique situation.
Juan Camacho is the director of business law services for The Orlando Law Group. The attorneys at The Orlando Law Group can help business owners in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.
If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange Counties to assist you.