04/09/2020 0 Comments
Top Six Reasons Entrepreneurs Should Hire a Business Lawyer
Toronto’s Picov & Kleinberg provides trusted legal advice to GTA companies, including strategies to encourage profitability, growth, and longevity of the business. Some start-ups and entrepreneurs make the mistake of failing to consult with a lawyer, assuming that legal advice is an unnecessary expense. That choice invariably ends up costing more in the long run and can leave a new business exposed to avoidable risks or embroiled in costly litigation. Our Toronto law firm offers a complete range of corporate legal services for entrepreneurs, customized to complement your business’s needs and objectives. There are myriad reasons to hire a Toronto business lawyer – let’s look at the top six.
Toronto Law Firm’s Six Reasons Entrepreneurs Should Hire a Business Lawyer
Here are the top six reasons that you as an entrepreneur should hire a Toronto corporate lawyer:
#1: To make an informed decision about the structure of your business.
Deciding whether to operate as a sole proprietorship or to form a corporation, partnership or joint venture is a crucial first step in starting any business. There are significant implications of each structure that must be considered, including personal liability, tax efficiency, and control of the business. A corporate lawyer can help you determine which option is the best way to organize your business and prepare the necessary paperwork to form the business.
#2: To ensure that you get what you pay for if you are purchasing a business or franchise.
Due diligence is a critical step for any entrepreneur as it prepares you to negotiate effectively and allows you to make an informed decision about a prospective deal. A Toronto corporate lawyer with experience in business acquisitions will conduct a thorough investigation on your behalf to ensure that you are not assuming unknown liabilities or debt and provide you with a legal opinion on whether the deal is legally sound. If you decide to move forward with the purchase, a corporate lawyer will handle all aspects of the transaction to close the deal, including transfer of licences and permits, employee contracts, and non-compete agreements that will protect your business.
#3: To protect your interests vis-à-vis co-founders, co-owners, or business partners.
If you will be running your new business with other people – even if they are friends or family members – it is imperative that you hash out the legal aspects of your business relationship. Expectations and legal rights must be dealt with upfront before disagreements arise. A skilled corporate lawyer will highlight issues to be addressed, such as how equity will be divided, capital contributions, management roles, voting rights, salary/compensation, etc. The lawyer will facilitate negotiations and then prepare a legally binding contract that protects all parties’ rights and interests.
#4: To build and clarify relationships with investors.
Entrepreneurs may need to team up with investors to get a new business off the ground or at a later phase to grow the business. Raising capital is a complicated commercial transaction. Any time you are looking to raise capital, there are essential documents that must be in place, which depending on the nature of the investment may include a term sheet, Articles of Amendment, and Shareholder Agreement. You should have a corporate lawyer to assist you with negotiating and “papering” the investment.
#5: Because you need a trusted business advisor on your side.
Running a business is complex and legal issues will arise. An experienced business lawyer can advise you on a variety of matters, not just during the start-up and formation phase of your business. When you have a relationship with a trusted corporate lawyer who knows your business, you can call on your lawyer any time for advice and guidance concerning any aspect of your business (negotiating commercial leases, hiring or firing employees, taxation, raising capital, protecting intellectual property, contracts with suppliers or customers, etc.).
#6: So that your business complies with existing and developing laws.
A business lawyer can ensure that your company complies with all applicable laws during the start-up phase, and can also add value by serving as a guide for you and your employees regarding various legalities and requirements throughout the course of your day-to-day operations, making your business more efficient and compliant as a result. A strong corporate lawyer will also advise you on changes in the law or legal developments that may impact your business – for example, new employment laws, changes to environmental or health and safety regulations – so that your business can be proactive and adapt. This will not only make your business more efficient and compliant; it will likely allow your business to avoid costly litigation or penalties.
Get Trusted Advice From Our Trusted Toronto Corporate Lawyers
Toronto’s Picov & Kleinberg Barristers & Solicitors prides itself on providing entrepreneurs with clear legal advice and attentive, personalized service. Since 1978 our Toronto business lawyers have built a strong reputation as a hands-on, small firm that provides large firm service and high-quality advice. Contact us today at 416-488-2100 or by email at firstname.lastname@example.org to discuss how we can help your business achieve profitability and longevity.