Starting a new business can be a daunting proposition. From managing cash flow to ensuring a clear business plan is in place, there are a number of different aspects to be aware of. Most people do not begin a business without the fundamentals tied down. However, many forget to think about the legal implications of their endeavour.
If you are starting a new business, you may need a lawyer to ensure that you are compliant with commercial law. This matters if you are self-employed, employ workers or control a larger business. To help you, here are two aspects of starting a business that have legal implications for you.
From debt collection to managing employee contracts, it is important to have legal advice on hand when running a business.
Buying a business
In many cases, there are a number of advantages to buying an existing business over starting your own from scratch. For one, it means that someone else has already put in the hard yards to get the endeavour off the ground and ready for sale.
You will need to weigh up the pros and cons of the business venture, asking questions such as: Is the business in good financial health and is there a market for the products that it sells? Alongside this, you will also need to have a lawyer help draft or advise on a purchase agreement that will give you the best protection possible.
The agreement should allow access to the financial documentation of the business, to check the level and the condition of the stock and to obtain the appropriate warranties from the seller.
Business partners are a great way to raise capital.Structuring your business venture
When you purchase or start a business, one of the most important decisions to make is how the business will be structured. For instance, you may not have the capital to begin the venture on your own, instead, you may need a partner to provide the required capital.
What is important is to have a business structure that fits your interests and services your business needs. For instance, are you willing to have someone look over your shoulder all the time? If not, a partnership may not be the best option for you.
A lawyer can help you understand the different aspects of a variety of structures, and can also help draft agreements and other legal documents, for example, those needed for incorporation.
If you are looking to learn more about starting a business, it is important to talk to a law firm you can trust. Contact the experts in the field of commercial law today.