Entrepreneurs and growing businesses navigate a range of legal decisions that can significantly affect their operations, risk profile, and long-term success. Publications like Inc. Magazine serve as an important resource for business owners seeking practical guidance on the legal, financial, and operational challenges of building a company — making contributions by attorneys who advise businesses a valuable service to founders, executives, and business owners.
Mandelbaum Barrett PC member Peter A. Levy authored an article featured in the June 16, 2016 edition of Inc. Magazine. Levy practices in the firm’s corporate law practice, where he advises businesses and entrepreneurs on corporate formation, transactions, contracts, and governance. His contribution to Inc. Magazine reflects the firm’s commitment to sharing practical legal guidance with the business community through leading national publications.
Key Legal Considerations for Growing Businesses
Businesses at every stage of growth encounter legal decisions that require careful attention. Entity selection — choosing between a corporation, limited liability company, or other structure — has implications for liability protection, taxation, investor relations, and operational flexibility. Founders who make these decisions without legal guidance sometimes discover later that their initial choices created complications that are costly to unwind.
Contracts are another area where legal guidance provides value early. Customer agreements, vendor contracts, employment agreements, and partnership arrangements all allocate rights, responsibilities, and risk in ways that may not be obvious from the text alone. Well-drafted contracts reduce the risk of disputes and provide a clear framework for resolving disagreements when they arise. Businesses that rely on standard form agreements without legal review may find they have agreed to terms that put them at a disadvantage.
Protecting Business Interests Through Legal Structure
One of the most important legal decisions a business makes is how to structure ownership and governance. Whether through a shareholder agreement, operating agreement, or other governing document, establishing clear rules for decision-making, transfer of ownership interests, and resolution of disputes among owners helps prevent conflicts from becoming crises. Businesses that grow beyond the founding team benefit from having these structures in place before disagreements arise.
Intellectual property protection — trademarks, trade secrets, and in appropriate cases patents — is another area where early legal attention can have long-lasting consequences. A trademark not registered when a business is small can become the subject of expensive disputes as the business grows and brand recognition increases. Trade secret protections require affirmative steps to maintain, including confidentiality agreements and appropriate internal policies.
According to the U.S. Small Business Administration, the choice of business structure affects liability, taxation, and operational flexibility, and consulting with a legal advisor before making these decisions helps business owners understand the trade-offs and choose the structure best suited to their goals and circumstances.
Contact Mandelbaum Barrett PC for Corporate Law Guidance
If you have questions about business formation, corporate governance, contracts, or other corporate law matters in New Jersey, the corporate law team at Mandelbaum Barrett PC can help.
Reach out through our contact page to speak with our team. We are here to help businesses at every stage of growth navigate the legal landscape with confidence.