While many companies often use attorneys for assistance in the incorporation process, many new businesses often ignore ongoing legal requirements to maintain their corporate status. Annual meetings of shareholders, directors and partners need to be held plus the recording of minutes and appointments of officers must be in accordance with state regulations. Ignoring corporate formalities can jeopardize the corporate status of the company and lead to the disclosure of the corporate veil in the event of a lawsuit, thus leaving untouchable company officials in debt or loss. Thus, a business attorney plays an important role in corporate governance.
Intellectual property rights
Every company must legally protect its intangible assets. Some of the features that guarantee copyright protection include company names, brand names, logos, and unique products and services. Patents not only cover machines and other man-made items, but can also protect procedures or processes, including petroleum refining methods or water distillation procedures. A business attorney can assist with copyright, trademark and patent registration and help a company protect the assets responsible for its competitive advantage in the business market.
Employment agreement
Many companies, especially technology companies, consider the technical expertise of their staff to be a very important asset. However, they fail to protect their employees through non-compete and non-disclosure agreements. As you might expect, some employees will go out looking for new pastures and it is very important to protect your company from such employees from taking their technology expertise to other competitors in the market. A business attorney is useful in formulating and supervising the signing of employee agreements at your company.
Exit Strategy
Entrepreneurs are often so focused on starting a new business that they forget to think about the scenario if one of the principals decides to leave the company. When one of the main rules decides to leave unexpectedly, it can have a negative impact on the continued operation of the business. A business attorney can help by formulating exit strategies such as buy-sell or buy-back agreements for a partnership firm to allow partners to sell their interests without facing legal trouble or placing unwarranted financial debt on the firm.
What about the cost of hiring a business attorney? Well, top lawyers don’t come cheap and the same goes for other consultants that are important to your business. Investing in a business attorney can help avoid a lot of trouble later on.