Does My Small Business Need a Legal Plan?

small business owner reviewing legal information

What is a legal plan?

There is more to owning a small business than having a product or service and a customer base. Legal planning sounds like something for a Fortune 500 company, but to be considered legitimate, a small business should have legal planning too. 

Legal planning is needed by any business that hopes to be a success, and what business doesn’t? Legal planning should include mapping out the goals for the business and how to execute the plan. This keeps everyone in the company in focus to reach the company’s goals and their art in the execution and maintaining the plan. Legal planning is looked up as being a company’s resume and help the business’ efforts in finding funding. 

Legal planning for a business isn’t a guarantee for success in the business venture, but the odds of being successful are increased with proper legal planning when used properly as a strategic tool. Legal planning or a business is a way to attract and convince potential investors with solid financial, marketing, and strategic information. 

What is legal service benefits?      

For any size business, legal planning is an important consideration, and as we mentioned earlier, perhaps more for a small busines more than most people realize.  There are often many legal hurdles of various sizes and the rates that lawyers charge are typically out of reach of a small business owner. 

That is where having pre-paid legal planning service is  cost-effective and smart, something akin to having pre-paid health insurance. The benefits of legal planning for a monthly fee offers a business owner, and often employees can be grouped into the plan, a range of services at a set price. The benefits a small business owner can take advantage of could include: 

  • Legal consultation 
  • Legal correspondence 
  • Designated legal consultation
  • Legal review of basic contracts 
  • Legal review of executed documents 
  • Legal review of documents 
  • Debt collection letters
  • Lawsuit defense 
  • Reduced fee for legal services
  • Reduced contingency fee legal services

What insurance covers legal costs?

Business legal insurance is an affordable solution to having the guidance of a business lawyer when you aren’t clear and sure of your legal rights as a business owner. When designing your business legal planning, including the cost of having Legal Protection Insurance coverage should be included. This will protect your company from defending itself in the case of a lawsuit. 

Are legal plans worth it?

When you’re starting up a business, there are so many expenses, endless expenses. So, when somebody ask you if you have any legal planning in place, your first question may be, “Is legal planning worth it?”, and the answer is yes! It certainly better than not having it. There isn’t a more important partnership for a small business than Legal planning and small businesses because of the many legal caveats in forming, owning, and running a small business.

What makes having a legal plan worthwhile? Legal expenses can ruin a business if you’re not prepared. A Legal Insurance Plan is the best way to protect your business and yourself  from expected and unexpected events that every business goes through. The peace of mind you’ll have when you have an attorney handling those matters is priceless, and that is what a legal plan provides you. 

open sign on small business

Should I enroll in a legal plan?

As a small business owner, legal planning is the responsible thing you can do and by doing it from the beginning, you’ll side-step several common mistakes that can ultimately sink your business. Some issues that legal planning can help you with are: 

  • Co-founder agreement: When there is more than one founder, a proper agreement will define how your partnership will work, and what will transpire if the business dissolves. 
  • Choosing the right legal entity: Setting up a company isn’t as straightforward as it seems. The intricacies of corporate law and the regulations of it all can be confusing for somebody that doesn’t have a business or legal background.   
  • Intellectual Property: Intellectual property is a big part of a business. Also own as IP, this includes any copyrights, patents, and trademarks and protects you  against any misuse by others, including any trade secrets. IP protection also keeps you from infringing on another company. 
  • Employee agreements: It is easy and fast to build a new team, using nothing more than a handshake and verbal agreements. Going forward though, that employer-employee relationship could have problems later and without proper paperwork that outlines the obligations and responsibilities, it can get complicated and serious. This includes the intellectual property mentioned above. 
  • Proper licensing and permits: Many businesses need to have operating permits or seller’s permits as well as a tax permit. There are a variety of licenses and permits that a business may need is part of what a legal planning professional will help you with.
  • Contracts: To operate a business professionally, you need to have contracts between you and our clients and vendors that protects you and your company. 
  • Contractors vs employees: If you hire somebody and have them on payroll, they are an employee. If you have an agreement with somebody as a non-employee to complete work for you, they are not entitled to benefit your employees received. There are issues like taxes an unemployment that must be lined up and within your legal planning, these issues are addressed and stated. 
  • Taxes: Taxes are the one thing that nobody likes, and when you own a business, they can become complex. A legal planning service can assist with the  web of taxes that are involved in running your business with or without employees. 
  • Documentation and paperwork:  Being lax in maintaining documentation and paperwork can get you big trouble fast.  A legal planning service will assist you in what should be kept and what can be tossed. 

The largest mistake you can make is not getting professional assistance and guidance in starting your small business. With that assistance, they can help you design your legal planning, answering questions like What is a small legal plan and make the decisions that are advantageous. Call 888-667-6150 today!