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Significant Impact Legal Advice Can Have on New Business's Potential for Success

business law.jpgStarting your own business can be an extremely rewarding venture, both personally and financially. It is important for potential entrepreneurs to be aware of the fact, however, that even a one-in-a-million business idea that has tremendous potential could easily be derailed by failing to consider the myriad legal issues related to starting and operating a business. Fortunately, by consulting with an attorney familiar with California business law, startup founders can maximize their chances for success and limit their legal liability. Some of the ways a lawyer can help entrepreneurs are detailed below. For specific advice regarding your situation, call our office today.

Forming the Right Business Entity

For many people who are starting a business, the most important aspect operating through a business entity is the limited liability associated with doing so. While limiting personal liability is important, it is also important to consider whether the business entity chosen will allow a company to expand as needed without a significant restructuring at a later date. For example, for companies that wish to seek outside investment, a corporation is often more attractive to investors. For this reason, it is important to consider a company's ultimate goals when choosing a business entity.

Addressing Intellectual Property Concerns

For many startups, their most valuable (and sometimes only) asset is an idea for a new product or service. Consequently, these ideas should be protected from misappropriation whenever possible, a goal that can be accomplished through the use of legal mechanisms like trademarks, patents, copyrights, or trade secrets. This is an extremely complicated area of law, and entrepreneurs who try and engage in "do-it-yourself" intellectual property (IP) protections often find themselves on the wrong side of a lawsuit or with their IP legally owned by another party.

Contract Drafting and Review

Contracts are an essential part of the day-to-day operation of any business. Whether you are providing a product or a service, any time you agree to provide it in return for some form of compensation, you are entering into a legal contract. While it may come as a surprise to many people, a legally enforceable contract can exist even if nothing is ever written down - a verbal agreement is sufficient. An attorney can help with drafting contracts that your company will use on a regular basis (such as employment contracts or purchase orders) and review those that other parties submit to you. Having legal counsel in regard to the contracts into which your company enters will ensure that they are enforceable, accurately reflect the intention of the parties, and do not create unnecessary legal liability.

Contact a San Jose Business Attorney Today to Schedule a Consultation

If you are considering starting or have recently started a business, you should talk to an experienced lawyer as soon as possible. In many cases, working with an attorney before any legal issues arise can help a business avoid expensive disputes and litigation in the future. To schedule a consultation with one of our skilled San Jose business attorneys, call Diemer, Whitman & Cardosi, LLP today at 408-971-6270.



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