Ythan
Lax was not a newcomer in the business world. He had spent years in corporate
communications before striking out on his own by opening a Little Gym franchise
in upstate New York. But despite his experience, he felt unprepared to cope with
the myriad legal issues that arose and sought out a lawyer for help.
"If
you think that having an attorney that is qualified is expensive, try not having
one," Lax said, who paid $7,000 for his. "I can't count the number of mistakes I
would have made — taxes, financing and, perhaps the scariest part — signing a
seven-year lease with a personal guarantee," without the advice of counsel.
When do you really need a lawyer? Despite the proliferation of both
self-help books and Internet advice, even the most sophisticated of business
people find, as Lax did, that when starting a business they need an individual
lawyer to guide them through the most basic decisions as well as the more
complicated ones, like financing and property issues.
. . .
The business owner also should think about any intellectual property assets that
will be used by the new company. At a minimum, product or company names should
be researched online first, even though a lawyer ultimately should perform a
trademark search. The owner also must think about how to protect other assets —
designs or processes, for example — when starting up. While it may be simpler to
contribute the assets to the business, Walsh said licensing them to the business
could be a better option, because "you can maintain some control over use of the
invention."
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