Starting a business — whether it’s your first venture or just the most recent of many — is an exciting venture. It’s easy to make the mistake of believing you need a business lawyer only if you run into legal issues down the line. However, there are several key legal considerations when starting a business, and a lawyer can help you address them immediately. Being proactive when it comes to the legality of your company can potentially save you money and time and help you avoid accidentally violating important laws and regulations. Here’s a look at what a business attorney can help you accomplish.

To set your business up for success, you should not wait until you’re facing a legal issue to hire a business lawyer. 

Key Legal Considerations When Starting a Business

Build Your Business on a Solid Foundation

The decisions you make when setting up a Houston business can have a lasting impact on your company’s finances and future. While a business lawyer can walk you through a comprehensive list of steps to follow, these are some of the most important decisions you need to make as you prepare to open your doors to the public.

1. Type of Business Structure

Before getting into the finer details of launching your business, you will need to select what kind of business structure best suits your needs. These are some of the most common:

  • Sole Proprietorship: You are the sole owner, and your personal assets are connected to those of the business.
  • Limited Partnership (LP): Multiple people own the business, but one has unlimited liability (the rest have limited liability).
  • Limited Liability Partnership (LLP): Multiple people own the business, and all have limited liability.
  • Limited Liability Company (LLC): You are considered self-employed, but your personal assets are separated from the business.
  • C Corp: The business is its own entity that faces separate taxes and can be held legally liable.
  • S Corp: The business is its own entity, but some profits and losses can pass through your personal income, helping you avoid double taxation.

Which structure is right for you depends on your business type. For example, low-risk personal ventures may work well as sole proprietorships. However, if you are in a field where you may face a lawsuit, an LLC can help you stop a plaintiff from going after your personal assets. Your business lawyer can discuss your goals with you and help you select the business entity that best serves your needs.

2. Tax Liabilities

Understanding the tax obligations your business will face is a key part of financial planning. As a Texas business owner, your tax situation will not be as complex as that of business owners in other states, because Texas does not tax individual or corporate income. However, you will still need to ensure you are able to pay your federal tax liability each year. If you don’t have a complete understanding of your tax liability, you may find yourself behind on taxes almost as soon as you open.

3. Industry-Specific Regulations

Some industries face more hurdles when it comes to regulatory compliance than others. For instance, businesses in the arts and entertainment industry face far fewer regulations than those in the finance sector or food service industry. A business attorney can help you ensure your business meets all required regulations, which in turn can help you avoid sanctions and fines.

Failing to comply with state and federal laws and industry regulations can lead to devastating consequences. Don’t risk the business you’ve worked hard to build — call Weisblatt Law Firm at (713) 666-1981 to book a free phone consultation now.

4. Company Policies and Procedures

Every business (with the possible exception of sole proprietorships) should have clear procedures and policies, such as the following:

The language used in your policies and procedures is nearly as important as the content, and a business lawyer can offer you valuable guidance or even draft policies for you.

Benefits of Having a Lawyer From Day One

Protect Yourself From Costly and Damaging Mistakes

Why hire a business lawyer sooner rather than later? Here’s a look at why you need a lawyer from the very start.

Avoid Unexpected Expenses

A business lawyer can help you plan your company’s finances ahead of time. Many new companies are in a somewhat precarious situation, but a solid financial roadmap can help build a robust financial foundation.

Protect Yourself From Liability

Every business needs safeguards in place to protect itself and its owners from legal action. From choosing the proper business entity type to crafting policies that stand up to legal scrutiny, a business attorney can help you keep your business legally secure.

Avoid Reputation-Ruining Sanctions

Running afoul of regulations isn’t a good look for any company. However, if you face sanctions from regulatory agencies as soon as you open, your company might face serious reputational damage that proves to be insurmountable.

Build a Valuable Relationship

If you do happen to face surprise legal problems, you need a trusted lawyer you can call immediately. When you start off your company with the help of an attorney, you will have a legal advocate who is already familiar with your business if you happen to need legal advice in the future.

How a Houston Business Lawyer Can Help

You shouldn’t simply hire the first business lawyer you find — take your time and select an attorney with experience in your industry and a track record of helping new businesses get off to a strong start. Andrew Weisblatt has been practicing business law since 1992, and he has represented businesses of all sizes in a range of different industries. He aims to build strong, lifelong relationships with clients and guide them through any business-related legal problem they may face.

Ready to start building a successful business? Call Weisblatt Law Firm at (713) 666-1981 for a free telephone consultation.

Houston Business Contracts Attorney

Attorney Andrew Weisblatt

Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio