Although many corporations often use attorneys to help with the incorporation process, many startups often ignore the ongoing legal requirements to maintain their corporation status. Annual meetings of shareholders, directors and associates must be held, in addition to the recording of minutes and the appointment of officers must be in accordance with state regulations. Neglecting any corporate paperwork could put a company’s corporate status at risk and lead to the lifting of the corporate veil in the event of a lawsuit, thus exposing otherwise untouchable company officials to debt or harm. Therefore, a business attorney plays a critical role in corporate governance.
Intellectual property
Every company must legally protect its intangible assets. Some of the features that ensure copyright protection include company name, brand, logo, and unique products and services. Patents not only cover machines and other man-made products, but can also protect procedures or processes, including oil refining method or water distillation procedure. A business attorney can assist with copyright, trademark, and patent registrations and help the business protect the assets responsible for its competitive advantage in the commercial marketplace.
Labor agreements
Many corporations, particularly technology companies, view the technical expertise of their staff as an extremely important asset. However, they do not protect their employees through non-competition and nondisclosure agreements. Unsurprisingly, multiple employees will be out in search of new pasture, and it is critical to protect your business against such employees taking their technology expertise to other competitors in the market. A business attorney is helpful in formulating and supervising the signing of employee agreements in your company.
Exit strategies
Entrepreneurs are often so focused on establishing a new business that they forget to think about the scenario in case a director decides to leave the company. When one of the top rules decides to leave unexpectedly, it can have a negative impact on the continued operations of the business. A business attorney can help formulate exit strategies, such as buy-sell or repurchase agreements for associate companies, to allow partners to sell their interests without facing legal trouble or placing undue financial debt on the corporation.
What about the fees of hiring a business attorney? Well, reputable attorneys are not cheap and the same applies to other vital consultants to your business as well. An investment in a business attorney can help you avoid many problems in the future.