I recently spoke with a client needing help resolving an array of various needs. His business was thriving, revenue was up, and internal operations were improving. He was confident in his marketing and the culture he carefully crafted. The problem: minor legal errors were causing him headaches. Business law is not usually top of mind, but it should be because it can wreck an otherwise healthy organization.
Specifically, the aforementioned client had employee issues, inadequate vender contract, and a brewing trademark dispute. Let’s look at each issue and what can be done to prevent it from becoming a problem.
Employees and Human Resources
The ebbs and flows of business are often related to employees. When companies have talented workers who are happy, they thrive. Conversely, tension around employees cause uncertainly.
In the example above, our client had two issues. The first is how he would retain a high-level employee. The second was terminate an employee. Both are easily resolve with good legal counsel.
Retaining good employees is a business decision, but drafting the employment agreement should be done by a lawyer. Business lawyers are also savvy at coming up with mutually beneficial terms. A good business attorney will know how to create all the documents needed for employment agreements and other human resources needs, which should be done well before you identify the employees you want to retain.
Contracts
Agreements and contracts are not the most fun topic, but they are crucial to business. If both parties are not made aware of the terms, in writing, then it’s easy for things to go south. This relates to vender agreements, employee contracts, sales agreements, among others.
One problem frequently arising is clients using AI or google to create these agreements. Internet created documents are often generic, draw incorrect information from other states, and don’t have enforceable penalties.
It’s best to have a lawyer draft a suite of documents for a company so the company can use them, modify them, and update them as needed.
Intellectual Property
Clients frequently call our firm asking us to trademark their business. Often, the name is not able to be trademarked because it’s too generic or someone else has already done it.
The solution is addressing intellectual property issues like trademarks before starting a business. Everyone has a name in mind for their company, but often it’s not the best one from a legal standpoint. It’s important to make sure it’s not too generic, it does not infringe on the name of another company, and it also aligns with your marketing strategy. Most business law firms are adept at advising on these issues.
Be Proactive
The big takeaway is that all businesses should have a relationship with a lawyer. Knock out the legal issues before they become a problem. Aside from employee issues, drafting contracts, and addressing trademark issues, a business law firm can help companies minimize risk and identify liabilities. Of course, each industry also has nuanced questions, which lawyers can help address.
The client mentioned at the outset of this post could have benefited greatly from having our firm draft employee contracts and other agreements, as well has having us advise on protecting intellectual property.
Our firm constantly deals with issues that could have been avoided. When lawyers are retained to clean up contract disputes or employee issues, it’s much more expensive for the business owners. These expenses can be avoided with the right general business counsel.
For more legal tips, visit our blog or find us on YouTube. If your need help with a particular case in Charleston, SC or Pawley’s Island, we’re always available to review your situation and see if we can help.
