Mitigating operational risks involves both dealing with legal disputes as they arise as well as having a solid legal foundation to the operations of your business. And whether you are a seasoned business leader or starting a new business, working with a business lawyer has numerous benefits to mitigating those risks. But in order to understand those benefits, it’s helpful to know what a business lawyer does. Many business lawyers focus their practice on one or two main areas, while others serve businesses in a variety of ways.
Litigation or Transactional Legal Work
There are two key distinctions of business lawyers, those who do trial work (litigators trying to resolve a dispute), and those who focus on contractual work (transactional lawyers working to make sure business practices are legal and in the best interest of their clients). Business lawyers who litigate are similar in practice to civil litigation attorneys in general, but often focus on business-related issues such as contract disputes, employment matters, intellectual property, or product liability. Some business lawyers focus on only one aspect of business litigation, while others represent businesses for all of their legal matters.
Transactional business lawyers work more on helping business owners stay compliant with rules and regulations. They may also write and review business contracts. And many transactional business lawyers help those looking to start a business determine which business form is best for their particular business venture—such as sole proprietor, partnership, limited liability company, or corporation. The business lawyer will often prepare and file all of the necessary paperwork, establish the formalities required to operate the business, and provide the guidance necessary to legally operate the business.
Another possible way to use a business lawyer is as general counsel. General Counsel can be either a paid staff member in an organization, or an individual attorney or law firm that specializes in business law hired to provide the full breadth of legal services to the business.
Effective Business Decisions Requires Successfully Navigating Through the Risks
Running a growing organization requires company leaders to continuously make effective decisions to help their business move forward. To do so, they must have one eye on the future of their business while staying focused on the present as they review the company’s current status. A business lawyer acting in the role of general counsel, providing task-specific transactional work, or working to resolve a dispute through litigation, helps business owners by providing legal guidance and advice to navigate through the legal issues they may face, whether dealing with a current dispute or establishing a strong foundation for the future..
When searching for the right business lawyer, look for experience in business formation, contract development and disputes, partnership agreements and other business-related work. The firm you hire should not only offer guidance on the latest regulations but should also help build effective in-house policies and procedures that are carefully structured in response to new regulations. A qualified business lawyer can empower organizations to achieve their long-term objectives and reducing the risks of legal issues.