Reasons Why A Corporate Lawyer Is Indispensable When Launching A Corporation

When you hear the term corporate law, you have probably assumed that it is synonymous with business law. As such, when starting your corporation, you could be under the impression that you simply need to hire a business lawyer to handle the legalities of your new venture, but this will be a big mistake.

While both these types of law are related to businesses, corporate law is primarily focused on the formation and management of your corporate entity. Whereas business law is related to matters such as contracts with vendors, employment contracts, and so on. So why would you need a corporate lawyer if you have already launched your corporation? Here are a couple of reasons why a corporate lawyer will prove indispensable for the long term.

A corporate lawyer will distinguish your corporation as a singular entity

You could be under the presumption that since you started the corporation and sit at the head of its board, you have complete control over the company. But this is untrue. For the sake of your operations and your individual needs, the corporation has to be deemed a separate entity on its own.

For example, if someone is to file a lawsuit against the corporation, a corporate lawyer will ensure that this lawsuit does not interfere with you since the corporation will be viewed as an individual entity in this instance. As such, if the company is in trouble and the corporation is at risk, the corporate lawyer will work to make sure that your personal assets and finances are separate from the corporation's resources.

A corporate lawyer will work to uphold the status of your corporation

As mentioned above, the corporation itself is a separate body from you and your board members. The main point of having this body is so that your company has a clearly defined structure that outlines how the business should be operated. However, simply because you have chosen to run your company as a corporation does not automatically mean it will stay this way forever.

What some new business owners are unaware of is the fact that their corporation needs to adhere to stringent regulations for it to legally maintain its status. Failure to meet these legal obligations will lead to the dissolution of your corporation by the government. Therefore, you lose the benefits that come with running a corporation. To prevent this from happening, it is vital to have a corporate lawyer on your team that will stay on top of upholding your corporation's status. Contact a corporate lawyer to learn more.