Want to start a new business? Are you already at the head of an SME and are you wondering about your legal responsibilities? This article is made for you!
Many young entrepreneurs are unaware of the risks of a lack of legal and legal support. This is why some turn to the professional support of a lawyer. However, they don’t want to shell out sky-high fee rates. Fortunately, with the democratization of the legal world, there is now a way to solidify the legal aspect of your business without having to empty your pockets.
To guide you and allow you to see the business options available to you, here is a summary of the legal aspects in which your SME could benefit from the guidance of a lawyer.
Developing the business structure
Every new entrepreneur finds themselves in a different starting situation. Indeed, some have a lot of assets, others less, while others do not want to include their personal liability in the project. This is why the choice of the legal structure of the company is important and must absolutely meet your needs. In order to advise you in your choice, you can call on a lawyer so that he can:
Ensure that all formalities for the incorporation and registration of your business comply with the law.
Among the examples of structures: sole proprietorship, joint-stock company, limited partnership, general partnership, etc.
Collect accounts receivable
The words “unpaid invoices” give businesses a lot of headaches. After unsuccessful follow-ups, taking legal action with a lawyer often speeds up the payment process or at least promotes an amicable settlement for clients in financial difficulty. The seriousness of sending a formal notice written by a lawyer puts a lot of pressure on bad payers. Advantageously for companies, the current legal market offers fixed and low-cost packages for the drafting of a formal notice by a lawyer.
Business financing
Finding capital for a new business is key. Obtaining a legal opinion on the terms of your financing agreement will allow you to obtain the best possible agreement for your business. This opinion will also allow you to know and understand the scope of the conditions of your agreement.
The choice of your commercial premises is one of the first and big decisions of your company, because it constitutes a significant expense. Before signing the lease, you must make sure of several things. Indeed, the special provisions, charges, rental repairs, related fixed costs (taxes, taxes, etc.) and the inventory are all elements that are worth being reviewed and explained by a lawyer. The latter is able to do a complete review of the lease.
In the case of young expanding companies, the premises can quickly become inadequate or too small. Negotiating well and knowing the termination clauses before signing the lease can eventually help the expansion of your business rather than block it.
Ensure the expertise of a lawyer throughout the expansion of the company.
A legal follow-up allows you to have a lawyer who answers your questions as they arise. It is also a good way to prevent conflicts and to be judiciously advised in the stages of your entrepreneurial activities.
Review of a contract
Throughout their expansion process, young companies will have to sign contracts and enter into agreements with other companies. It is usual to sign documents whether it is a service contract, a receipt, a purchase contract, a sales contract, a confidentiality agreement, etc. When you don’t know or you doubt the real legal repercussions, it is always prudent to have it reviewed by a lawyer , and thus avoid any surprises.
Negotiate, review and draft employment contracts
In Quebec, the employment contract is linked to several legislative provisions and is an essential document for maintaining a good relationship between an employee and an employer. Whether we are talking about working conditions, vacations, social benefits or employer obligations, everyone must find something for themselves. This is why mandating a lawyer for the drafting, the revision or even the negotiation will save you time and prevent you from entering into agreements that your company could not respect. The contract also makes the execution of the work clearer for all parties.
Intellectual property and civil liability
It is essential not to incur liability when developing a new product and making it available on the market. Having a lawyer who does the proper checks and protects your trademark greatly secures your business. The lawyer is all the more equipped to explain to you the scope of your civil liability as a business. He can also draft the limitation and exclusion of liability clauses for you and explain their relevance to you.
In summary, the absence of legal support for your business could lead to unfortunate situations. If we take the cases above, here are examples that could harm your company.
The absence or non-respect of an employment contract could lead to tensions and dissatisfaction among your employees. In addition, poor financing conditions and inadequate commercial premises could lead to significant monetary losses. One of the greatest dangers remains that of legal proceedings. In addition to losing time, money, reputation and public trust, an unfavorable judgment on your company could even make financing more difficult to obtain. The mismanagement of legal rules and applicable laws could even lead to the deregistration of your company.
Thus, the expression “prevention is better than cure” takes on its full meaning when talking about a legal conflict and the laws applicable to a company.
The Advantage of a Lump Sum or Subscription Lawyer .
Lawyers’ fees are often known to be very expensive. Start-ups are often financially constrained and reluctant to hire a lawyer, taking big risks. That’s why new businesses should definitely look to market alternatives that put an end to hourly billing and better suit their business plan.
Thus, the new law firms like Neolegal, offer legal services with fixed sums or in the form of subscription, which will allow you to secure the legal aspect of your company, and this, for each stage of your SME.
In conclusion, SMEs must clearly understand their legal responsibility and act accordingly in order to prevent all potential risks. The ideal is to find a business partnership with a reliable law firm in which you will feel confident.
