Here’s Why You Need a Business Attorney While Starting a Small Business

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Small business owners, while launching their new business, have a lot of matters to plan for and think about. Forming the company, bringing in finance, hiring employees, and setting up the office space are just a few of the tasks that would keep an entrepreneur up all night. One of the last things they would even consider is hiring a business attorney for their company.

Some business owners may assume that a business attorney is someone you seek out only when your business runs into legal problems of some sort or, God forbid, if a crime has been committed. That is a common misconception, as business attorneys have a lot to offer in terms of guidance and advice in some very important aspects of running a successful business. Also, most small business owners assume that legal costs are an unwanted burden to bear so early on in the business. However, expenses on legal advice is money well-spent, and will greatly benefit your business in San Diego in the long run through the hiring of a business attorney in San Diego as he will advise you on preventing legal issues that may have arisen otherwise.

Here are some of the situations where your small business in San Diego will need a business attorney:

Starting a Business

A sole proprietorship, being the simplest form of business, might not immediately need a business lawyer. However, partnerships and LLCs must create and file a considerable amount of documentation in order to register with the state. The same applies for corporations and S corporations, who must also prepare bylaws and other documentation, as they have a much more complicated ownership structure. These are areas where you will need the guidance of a reputed business lawyer in San Diego, who is familiar with the corporate laws of the state of California, and can walk you through the compliances and laws of the state.

Employment Agreements and Contracts

Employee agreements are documents that can be easily prepared. Also, in case of errors or changes to be made in some point in the future, these changes can also be easily carried out. However, most small business owners wisely opt to start out with contractors rather than full-time employees, at least until the business picks up. And in the case of creating documentation for contractors, the contracts need much more legal knowledge. Mistakes in these documents could cause serious legal issues for the company. In this situation, it is best to hire a business attorney to draw up the contracts, following the proper procedures.


Small businesses sometimes start up with angel funding or seed funding. This is a very important situation where the expertise of a business lawyer is required. If your business in San Diego is being funded by an outside party, then you will need a San Diego business attorney who will be able to get you the best deal, within the laws of the state. A business lawyer will also be able to understand your goals for the business, as well as the agenda of the investors, and strike a balance between the two. He will most definitely have an insightful understanding of the investor documents, and will be able to ensure your safety and benefit in the deal.

Apart from this, you will need business lawyers throughout the lifetime of your business, as they guide you through various aspects of the running of your business. This can include dealing with employee issues or dissatisfied customers, keeping track of organization documents and filing annual fees, protecting intellectual property, doing the taxes for the company, setting up the remuneration packages of employees according to labor laws and so forth.

Your business attorney will even be the best person to guide you through exit strategies when you are trying to sell the company, if the situation should arise. Therefore, small business owners should not hesitate to hire an experienced business attorney to guide their company, and also learn more about the different types of business attorneys and who would be the best fit for their business.