1 min read
Key Moments to Call a Startup Business Attorney in Your Entrepreneurial Journey
Embarking on an entrepreneurial journey is an exciting endeavor filled with possibilities and challenges. As you set out to build your dream...
3 min read
Chris Daming, J.D., LL.M.
:
When running a business with multiple owners, legal issues are bound to arise. From managing ownership stakes to resolving disputes, having a strong legal foundation is critical. However, not every issue requires hiring an attorney. There are many situations where you can handle legal matters yourself—especially with the right tools, like Legal GPS. This article explores when you need an attorney and when Legal GPS can help you DIY, saving time and money.
Legal GPS Pro
Protect your business with our complete legal subscription service, designed by top startup attorneys.
- ✅ Complete Legal Toolkit
- ✅ 100+ Editable Contracts
- ✅ Affordable Legal Guidance
- ✅ Custom Legal Status Report
1. Avoid Internal Disputes with Clear Agreements
Disputes between business owners are one of the most common challenges in multi-owner businesses. Clear agreements regarding roles, profit sharing, and decision-making are essential to prevent misunderstandings.
When to Hire an Attorney:
If your business has complex ownership structures or you foresee potential conflicts that could lead to litigation, hiring an attorney is the best choice to draft a tailored operating or partnership agreement.
When You Can Use Legal GPS:
For many businesses, basic operating agreements or partnership agreements are sufficient. Legal GPS offers templates and guidance to help you draft these essential documents, so you can handle it without the need for expensive legal fees.
2. Ensuring Legal Compliance
Each business type—whether it’s an LLC, partnership, or corporation—comes with its own set of legal obligations. From taxes to regulatory compliance, it’s crucial to make sure your business adheres to all applicable laws.
When to Hire an Attorney:
If your business operates in highly regulated industries or deals with complex compliance issues, consulting an attorney is recommended to avoid costly penalties.
When You Can Use Legal GPS:
For common compliance tasks like filing annual reports or meeting basic regulatory requirements, Legal GPS can guide you step-by-step, helping you stay compliant without the need for ongoing attorney involvement.
3. Handling Ownership Transitions
Ownership transitions, such as when an owner exits or sells their share, can be tricky without the right legal documentation in place. These events can cause financial strain or even put the business at risk.
When to Hire an Attorney:
If your ownership transition involves multiple layers—such as buyouts, significant asset transfers, or complex tax implications—an attorney should oversee the process to ensure legal precision.
But really - almost anytime you're dealing with ownership transitions, you should hire an attorney.
4. Protecting Your Intellectual Property and Assets
In businesses with multiple owners, disputes can arise over intellectual property (IP) rights and other assets. If not addressed early, these conflicts can harm your business in the long run.
When to Hire an Attorney:
If your business’s IP is core to your competitive advantage or has high commercial value, it’s smart to consult an attorney who specializes in intellectual property law.
When You Can Use Legal GPS:
For most businesses, Legal GPS offers templates and tools to help you establish basic IP agreements between owners, ensuring everyone’s contributions are protected without paying for high legal fees upfront.
5. Dispute Resolution
No matter how well things are documented, disputes between owners can still happen. Having a clear process for resolving conflicts is crucial to maintaining healthy business relationships and operations.
When to Hire an Attorney:
If a dispute escalates and the parties are unable to reach a resolution, you may need legal representation to mediate or litigate the matter.
This is another situation where you always need an attorney.
Legal GPS Pro
Protect your business with our complete legal subscription service, designed by top startup attorneys.
- ✅ Complete Legal Toolkit
- ✅ 100+ Editable Contracts
- ✅ Affordable Legal Guidance
- ✅ Custom Legal Status Report
6. Gain a Competitive Advantage with Legal Expertise
Beyond preventing legal issues, having legal counsel can offer a strategic advantage. Attorneys can help advise on growth opportunities, mergers, acquisitions, and protecting your market position.
When to Hire an Attorney:
For big decisions like merging with another company or acquiring new assets, having an attorney to oversee the process is invaluable.
When You Can Use Legal GPS:
For everyday legal decisions or guidance on expansion that doesn’t require complex legal strategy, Legal GPS offers tools to help you manage and understand your legal landscape without paying for ongoing legal consultations.
7. Ensuring Fair Profit Distribution
Profit-sharing among owners is often a contentious issue. Without clear agreements, misunderstandings can lead to disputes that harm the business.
When to Hire an Attorney:
If your ownership and profit-sharing arrangement is complicated or involves unique conditions (e.g., investor involvement), it’s advisable to have an attorney draft a custom agreement.
When You Can Use Legal GPS:
For straightforward businesses, Legal GPS provides templates for profit distribution agreements, allowing you to manage this aspect without the need for legal fees.
Conclusion: When to Choose DIY Legal vs. Hiring an Attorney
In businesses with multiple owners, some legal matters require the expertise of an attorney, especially when dealing with complex issues. However, there are many situations where you can handle legal tasks yourself, especially with the right tools. Legal GPS provides the guidance and templates you need to manage legal issues effectively, saving you time and money while keeping your business protected.
Do I need a business lawyer?
The biggest question now is, "Do I need a business lawyer?” For most businesses and in most cases, you don't need a lawyer to start your business. Instead, many business owners rely on Legal GPS Pro to help with legal issues.
Legal GPS Pro is your All-In-One Legal Toolkit for Businesses. Developed by top startup attorneys, Pro gives you access to 100+ expertly crafted templates including operating agreements, NDAs, and service agreements, and an interactive platform. All designed to protect your company and set it up for lasting success.
Legal GPS Pro
Protect your business with our complete legal subscription service, designed by top startup attorneys.
- ✅ Complete Legal Toolkit
- ✅ 100+ Editable Contracts
- ✅ Affordable Legal Guidance
- ✅ Custom Legal Status Report
Legal GPS Pro: All-in-One Legal Toolkit
100+ legal templates, guides, and expert advice to protect your business.
Trusted by 1000+ businesses
Why Google Isn’t the Solution for Legal Problems
Imagine yourself a half mile off the coast of Southern California. You want to go snorkeling, and you’re about to jump off a boat into the Pacific...
1 min read
How to Choose the Right Startup Attorney for Your Business
Starting a new business is exciting! There's a lot to do, from coming up with your business idea to making your first sale. But it's important not to...