Not all business transactions necessarily need a lawyer to be completed properly and legally and to your best interests. A person can usually start a small business by simply filing paperwork for a business name and advertising for customers, without meeting with a lawyer. However, not all business transactions are this simple and not all should be done on your own, without legal counsel. Note a few times when you should consult with a business lawyer in order to best protect your business interests.
1. When you want to go public
Going public by offering shares of stock in your company is not as simple as you might assume; you have responsibilities to shareholders once the process is completed and want to ensure you understand what is meant by having a business that is now owned by shareholders. There are also legal terms and paperwork that must be understood in order for the process to be handled properly; otherwise, those who buy shares of your company may want to file a suit against you sometime down the road. A business lawyer can ensure you understand all these things so that your business goes public legally and that it works in your best interests as well.
2. When you want to make special allocations or contribute property to the business
Making special allocations of your profits and losses or contributing property to the business for tax purposes can be tricky, as you need to understand how to state this on your tax return for maximum benefit. Making special allocations means splitting profits between partners in a way that doesn’t line up with the percentage of the business they own, and contributing property may be seen as income for the business unless its depreciated properly. These situations require a business lawyer to walk you through the steps to ensure you protect your profits and handle your tax returns properly.
3. When environmental issues arise
When you own a building or any type of property and an environmental issue arises, you want to have this handled by a lawyer. You may be liable for cleanup and for any health expenses faced by employees due to exposure, even if you didn’t cause the contamination. It’s vital that you protect yourself against this liability and understand what is legally required of you when it comes to restoring the environment, and a business lawyer can ensure your rights and interests are best protected overall.
For more information about working with a business lawyer, contact a company like Anthonys Solicitors.