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New York Business Start-Ups Should Invest in Legal Advice

New York’s new business sector has exploded in recent years, with 2011 seeing an 86 percent increase in the number of start-ups as compared to 1991.Our Great Neck small business lawyers know that New York has always been a hub of innovation, so in many ways, this is no surprise.

The Center for an Urban Future reported that the Bronx in particular is leading the way, with the number of newly-incorporated businesses climbing from 1,159 back in 1991 to 4,690 in 2011 – an eye-popping 305 percent increase.

What we want to ensure is that these new firms are equipped to handle whatever legal obstacles come their way.

In analyzing date culled by the New York State Department of State, researchers learned that the rate of new businesses increased every year up until the housing crisis in 2007, at which time it dropped sharply (except in the Bronx, where it still rose 5 percent). But the numbers have begun to bounce back since then, and new business formation has jumped nearly 10 percent between 2009 and 2011.

While the Bronx has made great strides, it isn’t even the No. 1 job-generating borough. Manhattan holds 35 percent of all new businesses (it held 52 percent in 1991), while Brooklyn held 35 percent, Queens 25 percent, Bronx 7 percent and Staten Island 4 percent.

The tech industry is a big part of this, but many other models have thrived as well in recent years. At the very least, you will need an attorney to ensure all the paperwork is properly filed, that your are in good standing with the IRS and that you haven’t overlooked any potential legal liabilities.

In the long-term, you will need someone with whom you can trust with your firm’s most sensitive legal issues. You need to be confident of his or her legal experience and skill and also comfortable in confiding.

In exploring whether an attorney is a good match for you and your new company, consider the following questions:

  • Question the attorney’s experience within the industry. Areas of business including franchise agreements, intellectual property and service contracts often require a heightened level of knowledge.
  • Ask about references. While many lawyers value client confidentiality, a seasoned attorney should be able to give you at least one or two satisfied clients willing to vouch for the value of their services.
  • Learn whether there are any conflicts of interest that could be relevant, such as if the attorney is working with a former business partner or competitor.
  • Ask about typical communication policies. How long does he or she take to get back to clients? Does he or she prefer phone, e-mail or face-to-face correspondence? Make sure your lawyer’s communication style will mesh with your needs.

The Law Offices of Ira S. Newman provides business representation in New York City, Long Island, Great Neck and throughout the area. Call 516-487-7375 or send us an e-mail.

Additional Resources:
Bronx leads new business growth, March 12, 2013, By Andrew J. Hawkins, Crain’s New York Business
More Blog Entries:
Great Neck Business Litigation Attorneys: Breach of Contract Can Devastate a Company, May 27, 2013, Great Neck Business Lawyers