4 Reasons Your Startup Needs to Have a Law Firm on Retainer

    Tracey Clayton

    There are quite a few reasons why every business out there needs to have a business lawyer who’s going to address all of their legal needs. This is especially the case when running a startup since even the slightest legal oversights can damage the company’s chances to keep operating. So, if you’re running a startup, you’ll definitely want to make sure you have a good law firm on retainer. And if you’re convinced just yet, here are our 4 reasons that might change your mind.

    Your Business Partner

    When working with our business partner, we all inherently expect them to honor their duties to the company. Still, if you really want to make sure your business partner honor their duties, it’s often a good idea to have experts from a local law firm draft partnership agreement for you. This document will clearly outline what each of yours’ expectations to the other partner are and how you plan to fulfill them. The last thing you want to do is work with someone for years only to realize they’re a fraud who’s stealing from you or abandons the ship as soon as it starts sinking and that’s where having a law firm on retainer can come in handy.

    Your employees

    You never know when one of your employees might feel harmed and decide to sue you or your company. There are plenty of reasons why this may occur, ranging from an employee believing they’re working in a hostile environment to them claiming they’ve been unfairly disciplined. Therefore, having a law firm on retainer is definitely a good idea, since that way, you’ll be able to act as soon as you receive a lawsuit from your employee. Even if you think all of your employees are happy working for your startup, being prepared for such a scenario is always recommended. Of course, you should still always try to focus employee dissatisfaction and avoid being on a receiving end of a lawsuit.

    Incorporation

    Even when starting out, having a law firm you can turn to is really important. This is the case because there are so many laws and regulations that might affect your company and breaking any of them can have huge consequences for you and your business. Therefore, you should retain an attorney even before you submit paperwork for your business incorporation. Of course, it’s always recommended that you turn to a local law firm, since laws and regulations regarding business incorporation tend to differ from region to region. So, if you’re starting a new NSW based business, turning to experienced Sydney lawyers is always going to be a good idea.

    Contract breaches

    No matter what kind of work you do, there’s always a chance a person or company you do business with will breach the contract they’ve signed. And if you have a law firm on retainer, their experts will send an informal letter to them and inform them about their breach of the contract. This breach may be anything from failing to deliver a product or not being able to make a payment on time. And that’s where the law firm can work with that specific person or company and demand what is owed. Hopefully, this should be enough to make the other party avoid breaching the contract any further.

    Having good legal representation is absolutely necessary if you want your startup to keep running smoothly. Of course, choosing a law firm to retain is something you should put a lot of time and effort into. Ideally, you should be able to reach an agreement with a renowned local law firm that’ll be able to help you as soon as some legal issues arise.