In expanding their activities, it is common for healthy companies to seek new financial contributions. This may be due to the partners’ new investments or, which is quite common, the injection of capital by third parties. In this last alternative, some options are the taking of loans in financial institutions, the entry of new partners in the company (who will not necessarily be managers), the issue of certain advantages to third investors, such as debentures, and, in larger enterprises, going public on the stock exchange. In assessing the best path, the entrepreneur must be aware of each of them’ legal repercussions, among other elements.
Every company, without a doubt, needs legal advice of business lawyer for several reasons. In the development of their activity, entrepreneurs need different legal guidelines:
1- Labor: For employees to be hired according to current legislation, to avoid future labor lawsuits, and even if they do occur, the company, being protected from the beginning, will be successful in the action.
2- Tax: Corporate tax planning, seeking tax avoidance, which is the implementation of legal methods to reduce the burden of the tax burden within the company’s budget, always respecting the legal system that allows minimizing the tax impact on companies, as well as, trace a route of shielding the partners’ assets, since they are the ones who assume the risk of the activity.
3- Business: The guidance of a legal body specialized in meeting business demand is necessary to ensure security in planning and entering into business and investments, respecting the law’s forms.
4- Contracts: It is essential, before signing a contractual link, the endorsement of a specialist lawyer so that the entrepreneur has security and tranquility with the responsibility that will be covered by signing that draft. Therefore, the endorsement of a lawyer in the contracts entered into by the company, both in analysis and drafting contracts.
5- Advisory: The purpose of the consultative department of a law firm is to act as a right arm of the entrepreneur in making decisions about what the current legislation says, that is, what the law allows or not to do and what the consequences are, and it is up to the entrepreneur to decide whether the risks are consistent with the company’s reality.
6- Litigation: Finally, always as a last resort, the litigation party, in defense of the company’s interests before the courts and administrative bodies when the company is effectively sued in court or when the company needs to sue customers, suppliers, etc.
Our intention in publishing this article is to clarify what a law firm makes all the difference to a company’s functioning and growth.
There are several other issues in which the entrepreneur will feel the need for a lawyer’s guidance in the business field, such as protection of copyrights, trademarks, patents, computer and telecommunications law, and economic criminal law, among others. Each business generates specific demands, which must be handled in a personalized way. The lawyer plays a fundamental role in the strategies adopted by entrepreneurs, who, aware of their businesses’ legal repercussions, have a greater capacity to measure risks, make decisions, and make their business prosper.