The U.S. is home to over 32 million small businesses and thousands of large businesses. Many, perhaps even most, of these businesses will sink or swim on their own merits
What Are the Benefits of Hiring a Business Restructuring Lawyer?
Did you know that the corporate law market is worth a staggering $136.7 billion?
It’s one of the largest law-related markets in the US, and it’s easy to see why. Corporate lawyers are in high demand as more companies undergo business restructuring.
But, some business owners still don’t recognize business restructuring lawyer benefits. Corporate restructuring is vital for business growth in the ever-changing economic environment.
The process is quite complicated, calling for expert advice from professionals. But, it’s normal to be skeptical about hiring them if you don’t know what they bring to the table.
Read on as this article looks at some benefits of hiring a business restructuring lawyer.
They Offer Legal Advice
It is risky to restructure your business without first consulting with an attorney. It entails a slew of complex activities that alter your company’s operations.
Business owners don’t realize that most of these processes are guided by the law. Failure to follow the law can be expensive, beating the purpose of restructuring.
It’s recommended to consult a business restructuring attorney through every step. They’ll guide you on what’s appropriate and legal, saving you a lot of time and money.
They Help With Labor Issues
Often, restructuring leads to department merges. These leave companies with excess workers, forcing them to lay some off.
Any experienced business owner would tell you that firing an employee is not straightforward. You have to consider several factors, among them, the employment agreement.
Firing any employee in contradiction to their employment agreement can cause legal trouble. But, this doesn’t mean that you necessarily have to maintain excess workers.
Your business restructuring lawyer will help you navigate your employment contracts. They can find loopholes you may not identify on your own. Or, they can help you create a suitable severance package for all parties involved.
Their input in labor restructuring will protect you from lawsuits.
They Ensure State And Federal Law Compliance
There are numerous reasons for corporate restructuring. The most prevalent are financial problems, large debts, and excessive competition. Restructuring in these instances results in buyouts, mergers, and acquisitions.
Understanding the laws around these activities can be tedious for anyone without a legal background. The US government regulates industries like banking and transportation. So, you’d have more hoops to jump through than other industries if you operate in either.
That’s more so if you’re merging with an international company as there are strict foreign investments laws.
Business restructuring lawyers keep track of all current and emerging regulations. They are better equipped to protect your interests and ensure legal compliance. Compliance leads to minimal interference from relevant authorities.
They Help With Taxes
Did you know that the US collected an estimated $284 billion in corporate taxes in 2021? Corporate tax is one of the government’s biggest earners.
And, with that comes a lot of oversight from the IRS. A single slip-up in tax filing can lead to auditing by the IRS, halting or slowing your restructuring. But, this is something you don’t need to worry about when you hire a lawyer.
They’ll work with your accounting department to ensure tax compliance before restructuring. Also, the attorney will guide you on your actions’ tax implications. This way, you won’t have the IRS following your every move.
They Help With Contract Drafting
Contracts are a significant part of conducting business. These days you have to draft contracts for all business associations. They are legally binding and, as such, enforceable.
When restructuring, poor contract drafting can prove costly, especially if contracts have loopholes that can be used against you. So, it’s always best to involve a business restructuring attorney. They’ll assess contracts and correct mistakes that may cause conflicts in the future.
Besides, they’ll ensure your best interests are at the forefront of each contract. The cost of hiring a lawyer is a small price to pay in this case.
They Help With Restructuring Plans
What’s the main goal behind your restructuring? Like many business owners, your main goal is most likely cost reduction. So you’ll focus on reducing costs in various business operations.
While corporate restructuring helps with this, it’s a short-term plan. Chances are, you may be faced with similar problems in the future.
A business restructuring attorney will help you look at the bigger picture. Your restructuring plan needs to address your cost concerns widely.
Instead of focusing on reducing costs alone, consider getting high-value employees, or improving technology and company management. These are more long-term solutions, so you won’t need to consider restructuring often. Your business restructuring attorney will help you create and supervise your plan.
How Do You Choose The Right Business Restructuring Attorney?
These benefits are contingent on finding the right business restructuring lawyer. You’ll need to consider several factors when choosing one.
The most vital is a lawyer’s expertise and specialization. While your family lawyer may do well in family cases, they’ll not perform in the corporate scene. Ensure you hire a law firm specializing in business restructuring for smooth transitions.
You’ll also need to consider a lawyer’s experience. Always choose competent attorneys as they’re more likely to provide fast services. Their expertise also translates to smoother and more efficient transitions.
Also, don’t forget to assess your lawyer’s reputation. Remember, your business’s future will be determined by how well your restructuring goes.
Don’t risk your future by hiring an attorney with many negative reviews. Chances are, they’re either unprofessional or poor at their job.
Ready To Hire A Business Restructuring Lawyer?
There are many business restructuring lawyer benefits. These professionals provide legal advice and help with tax and labor issues.
Legal problems in any restructuring activity can be costly and time-consuming. The good news is that you don’t have to encounter them. Save time and money by looking for an experienced business restructuring attorney.
Contact us for quality and affordable business restructuring services today!
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