When do I need a business lawyer?
business law lawyer Uncategorized
The old adage that “an ounce of prevention is worth a pound of cure” is particularly appropriate when it comes to business law.
I am often called upon by clients to resolve legal issues which could have been easily avoided had we used a preventive approached and addressed them in a timely manner.
In an ill-advised effort to save on legal fees, entrepreneurs often avoid contacting a lawyer regarding preventive law issues (ex: contract review, legal opinion, informal discussion on a business project, etc.) and choose to retain legal services only when problems occur. However, my years of experience dealing with these matters have shown me time and time again that the efforts deployed and fees disbursed to fix problems and resolve disputes far outweigh those required at the preventive stage.
In order to help you better determine when you should consider working with a business lawyer, I invite you to read the following excerpt originally published by the Canada Business Network:
“You may think that you can’t afford to hire a lawyer; however, legal counsel could be invaluable to your business.
Lawyers are trained to interpret the law and those who specialize in business law can be worth their weight in gold. It is less expensive to retain a lawyer up front and have your legal work done properly than to hire a lawyer later on to fix problems that may have arisen from that lack of legal knowledge. Sometimes things can appear to be straightforward, but legal transactions are often more complex than they seem.
When do you need a lawyer?
There are a number of situations where you should strongly consider consulting a lawyer.
Business structure
One of the first things you will need to do is to decide on the business structure that best suits your needs. Your options range from sole proprietorships, to partnerships, to limited or incorporated companies, to co-operatives. A lawyer can help you choose the correct form of business structure, based on the number of people involved, the type of business, any tax issues or liability concerns and the financial requirements.
Your lawyer can also help you draw up the necessary legal documents that set out the terms of any partnership or other shared ownership. This will help ensure that all parties will be treated fairly, and that there is a mechanism for handling any disputes or disagreements.
- Corporation, partnership, or sole proprietorship?
Find out which type of business structure is right for your business: incorporation, a partnership, a sole proprietorship or a co-operative.
Buying an existing business
If you wish to buy an existing business, you may have to decide whether to buy only the assets of the business or, in the case of an incorporated company, the shares of that company. With any business purchase, you should have a buy-and-sell agreement, signed by both parties, that spells out the demands and obligations of each, as well as the terms of the agreement (for example, non-competition provision).
- Buying a business
Find out what you need to know before buying a business: where to look, how to evaluate potential acquisitions, and what a fair price would be.
Leasing requirements
You may be inclined to begin by taking out a lease for your premises. However, leases can be one of your largest expenses. Make sure that your lease will be suitable to your business needs, in case you wish to break your lease or expand your business. A lawyer can give you advice on any pitfalls or costs that may be incurred, before you sign on the dotted line.
- Choosing and setting up a location
Trying to decide where to locate your business and how to arrange it once you get there? Consider your options.
- Signing a commercial lease
To ensure your business needs are met, be aware of the many things you need to consider when negotiating a commercial lease.
Contracts
You should get the advice of a lawyer when you are drawing up legal contracts such as:
- Licensing agreements
- Franchise agreements
- Employment contracts
- Subcontractor agreements
- Partnership, incorporation or shareholder agreements
- Lease agreements
- Mortgage, purchase agreements
This is not a comprehensive list. At the minimum, you should contact a lawyer before you sign any contract.”
If you have any questions, please feel free to contact me at 514-856-5601 (320) / malek@maleklaflamme.ca