Auckland Small Business Lawyers – How They Help
However excited a small business owner might be about running their company, it is inevitable that at some stage they will need legal advice and support. Big law firms will probably be too expensive and not want to deal with small businesses. However, there are some very good Auckland small businesses lawyers to find.
The legal issues arise at any and all stages of the business and can range from launching a new venture, signing a lease, hiring staff, buying equipment, taking on investors, or chasing unpaid invoices. Below, we take a look at a few of the key issues where people might need to hire Auckland small businesses lawyers.
Business Start-up and Structuring
Before starting a new enterprise, business owners are strongly advised to seek legal advice. For example, what structure will the company have? How will it be owned? For many people, they will be a sole trader, but for lots of others, they will have a business partnership. That can have a lot of unwanted repercussions later on. It is therefore, imperative that the partners understand their obligations, and potential pitfalls of working in this way.
Other options are a limited liability company, a trading trust, or a joint venture. Which will suit you better? Find out by talking to an Auckland small business lawyer like McVeagh Fleming.
Other start-up issues to consider include the company incorporation, constitutions, directors’ responsibilities, Shareholder Agreements, and governance documents. Business owners will want to be getting on with starting the enterprise but having all of these in place will give a much more solid foundation, and also a good framework if things do not work out as anticipated.
Contracts and Terms of Trade
A robust contract is the best way to avoid disputes with suppliers, customers, or trading partners. Any dispute is a deflection from the key aspects of the company, it will cost time, stress, and probably money too, especially if you have to involve a lawyer.
A small business lawyer in Auckland can not only draft a generic contract for a client, but they can review contracts that are offered to the business. Many lawyers will also negotiate supplier agreements. Lawyers are trained in negotiation so why not use their skill to your advantage?
Other papers that small business lawyers can work on for their clients include terms of trade, service level agreements (SLAs), distribution arrangements, confidentiality disclosure documents, website terms and conditions, and credit applications.
Terms of trade are important as the specify payment dates, whether interest will be due on overdue accounts, retention and ownership of goods, warranties, limits of liability, and how any disputes will be resolved.
Buying, Selling, and Growing a Business
A key aspect for any business owner is the exit strategy. How do you get out? Sale of the business, merger, selling your shares to other directors? Other firms might be looking to expand by buying businesses, whether competitors or to secure a supply chain. Whichever situation you are in, you will need to work with lawyers.
They will help with due diligence, assess assets and liabilities, prepare sale and purchase agreements, identify risks in leases, manage the financial settlement and distribution of those monies, advise on employee agreements and holiday pay issues, licences, and intellectual property.
All of these, and other issues like share transfer, any Restraint of Trade, and more.
Employment and Workplace Issues
If a small business has employees, there will be legal issues to address. The basic issues include a Job Description, and an Employee Agreement. Failure to have these can result in significant penalties.
Assuming these are covered, there can be employee issues such as disciplinary processes, personal grievances, contractor agreements, restructuring, and employee share bonuses.
If an owner is considering dismissals, redundancies, or changes to pay and duties, it is vital that they get legal advice and assistance. Any errors can become very costly, not just financially, but emotionally and a time-drain too.
Commercial Leasing and Property
Many small businesses work from premises, yet few own those building. The vast majority will occupy their premises by way of a lease. It is important that any business owner understands the implications of any commercial lese before they sign it.
Your lawyer can review the lease terms, renewals, rent reviews, guarantees, fit-out obligations, maintenance responsibilities, assignments, and make-good clauses.
They can also negotiate the terms of the lease on behalf of their client.
Disputes and Debt Recovery
Disputes are almost inevitable, despite having robust contracts and terms of trade. Something will arise such as late delivery, sub-standard product quality, poor workmanship, and more. A larger law firm, like McVeagh Fleming, will have dispute resolution lawyers, as well as small business experts.
A common dispute revolves around late payment issues. Early and robust action by your lawyer can get things resolved quickly and at relatively low cost.
Summary
Small businesses are the backbone of New Zealand’s economy. If you are starting out or are in a mature stage of development, you will need legal help from one of the Auckland small businesses lawyers. McVeagh Fleming has a team of highly experienced lawyers in many aspects of law that businesses will need. Click the link for more details.