People attracted by the prospect of starting a business are go-getters who with a good idea, patience and hard work will succeed in their endeavors.

An initial supply of capital is also needed. Initially, most entrepreneurs willingly invest their funds in product,
machinery, advertising, office rent, licenses and permits, and other expenses. A decision will be made as to whether to incorporate.

But do people give enough thought to spending funds on legal documents that can save them much heartache and expense later on if and when a legal issues arises?

Very often, the funds required for legal expenses constitute a small proportion of the initial capital outlay. But entrepreneurs are by nature optimists – what could possibly go wrong?

The fact is, there is a strong likelihood that a legal issue will arise sooner rather than later, in the form of one or more of the following:

1. Contracts for the purchase and sale of product. 

When purchasing product from a supplier, it is important to have a written agreement. You will have clients who require delivery of goods by a certain date. You do not want to be worrying about whether the goods are going to be delivered to you on time. Non-receipt means you will lose the client’s order and you will have to refund any deposits.

The best way to avoid this is to have a written contract with your supplier. It will let everyone know about deadlines. It will contain language providing for built-in damages to be paid if the supplier fails to deliver on time.

2. Office Lease.

Many entrepreneurs work out of their homes as they build up their businesses, but eventually many seek office rental space. This is often one of the larger expenses. An office Lease may contain several pages of legal wording.

Since a tenant may end up signing a lease for three or more years, the document should be reviewed by an attorney.

3. Hiring Employees.

There are many different factors here. If you are about to hire a prospective employee,  consider a written agreement, which may include:
A Non-Competition Clause;
A Trade Secrets Clause;
A full description of the employee’s job duties;
A list of workplace violations that may justify terminating the employee.

4. Partnerships.

A written agreement would include:
The initial monetary funds each partner will invest;
The hours of work that each partner will dedicate to the business.

In both of the above, the agreements will provide for attorney’s fees and costs.

You may be tempted to write the agreement yourself, or review a proposed agreement on your own. Do not succumb to this temptation. Invest in an attorney who will take on the task, prepare the document properly, and give you peace of mind.
You can then devote your time to growing your business, knowing that the legal work is in the hands of a professional.
Establishing a good working relationship with an attorney enables you to pick up the phone and call your lawyer and have ready access to answers to legal questions.