Have you been the victim of a faulty product dupe or failed DIY? Most of us have been there before, we want the newest pair of headphones but don’t want to spend upwards of three hundred dollars on a pair. So, what do you do? Probably do a quick Google search and find a pair that looks almost identical for half the price! Perfect! You place the order and patiently wait for your new headphones to appear on your front step, and when they do you rip into the packaging and put them on to listen to your favorite album only to realize that only one side works.
Or maybe you want a new bookcase, but you think it would be cheaper to pull out some plywood and build it yourself. You get the pieces all measured, built, and even painted. Then you drag it over to the front door only to realize that you failed to measure the door frame and the bookcase won’t fit.
A pair of faulty headphones and a oversized bookshelf on your back porch may cause some frustration, but luckily they shouldn’t cause any major financial issues for you. However, if you were to apply that same logic to services for your business you could be in for a major headache and might even have a lawsuit on your hands.
When it comes to forming a company, legal entity maintenance, and contracts for your business, don’t opt for the dupe. Spending money on legal fees saves you from the headache of a legal mess and saves the business money.
Legal Entity Insurance
Think of maintenance for your legal entity as another form of insurance.
Just as homeowners need to take precautions to protect their homes from unexpected events such as fire or natural disasters, businesses need to ensure that they are compliant with their legal entity maintenance obligations to protect themselves from legal risks. Legal entity maintenance involves regularly reviewing and updating the business to ensure that business licenses, state records, the business structure, and all agreements accurately reflect the current ownership and operations. Similarly, homeowners need to review and update their insurance policies to ensure that they are adequately covered. Both legal entity maintenance and home owner’s insurance require proactive measures to minimize potential risks and liabilities.
Typically setting up insurance is a priority to protect your business from unforeseen events like a fire or flood that could destroy everything. Like insurance, hiring an attorney for help with legal entity maintenance limits liability risk which saves money and hassle.
So why are many business owners unwilling to bear the expense of hiring an attorney for advice? Small business owners feel they can handle certain issues on their own because money is competing for a lot of different things. The top barrier for business owners to call an attorney is cost! With an attorney’s hourly fee, you can’t know until you are billed how much of a hit to cash flow those hourly fees total up to. Even though some attorneys charge flat fees, which is preferred by most small businesses, there still remains a barrier to moving forward with spending cash flow on legal fees over other things.
Maybe, Business Ownership Isn’t for You?
If you are hesitant to spend money on legal fees to ensure compliance and limit liability risk, then you need to ask yourself whether you are ready to be a business owner. Legal duties to protect the assets of a legal entity are automatic. You chose to be legally responsible and protect the assets of the business the moment you registered the legal entity. Protecting your business begins with maintaining the legal entity. Legal Entity Maintenance saves you money and hassle.
Limiting liability risk starts with planning out your compliance strategy to keep your legal entity maintained. In plain language, allocating cash flow for legal help is your legal obligation to protect the assets of the business. Business ownership means you are ready to spend what is necessary to ensure you do what is within your control to ensure compliance with your legal entity maintenance obligations. If you don’t, then you risk more than what you would have paid in legal fees.
You Should Strive for Protection!
Starting and running a business is a significant investment and it requires focused attention to your legal entity maintenance obligations to ensure safety and success. Protecting your business requires spending money on legal fees, insurance, and other measures to minimize risks and liabilities. If you are not willing to make these investments, your business may not be able to compete in the marketplace, sustain growth, or withstand unexpected challenges. The financial hits of litigation can be far more damaging to a small business than to a larger one.
Therefore, being a successful business owner often requires being willing to invest in the future of your business, even when it means incurring expenses in the short term. By working with a legal professional to stay up-to-date on your maintenance obligations you are more likely to avoid unnecessary risks. You shouldn’t be hesitant to spend money on something as important as legal entity maintenance and compliance, because in the long run this is what will protect you from paying high legal fees to fight an expensive lawsuit.
What Are Your Options?
If you know ahead of time how much the legal fees are then you can plan! With Avanta, you will know from the beginning what you will be paying. You won’t have to worry about getting a mysterious bill in the mail that you may or may not be prepared for. Planning is so important when it comes to the cash flow for your business, and legal services should be no different. You shouldn’t have to sacrifice the security of your business because of unknown and unexpected fees. You should have a plan to focus on your business and we are here to help make that possible.
Don’t Choose the Dupe!
It may seem tempting to skimp out on legal protection when starting a business. However, investing in legal services to set up your business and maintain compliance can save your business money in the long run. Don’t choose the dupe or do it yourself option when it comes to legal services because you cannot afford low quality legal protection.
