StartupTalky

Tag: lawyer

  • The Cost of hiring a Personal Injury Attorney

    Hiring an attorney is the best thing to do after suffering from a personal injury. It gives you legal backing to fight your case and get compensation from the guilty party/ insurance company. However, many people hesitate to find a lawyer because of the heavy fees and costs they need to pay to fight a case in court.

    Lawyer fees and additional expenses can strain your budget. Furthermore, there’s a difference between attorney fees and attorney costs. You have to pay both amounts to the attorney.

    The attorney fee is what you pay the lawyer for their expertise, skills, and knowledge. It is for the time they spend on your case. Attorney costs are court fees your lawyer pays when fighting the case. Lawyers incur a few other costs when fighting a case on behalf of a client. These costs will be charged to the client’s account.

    However, the question remains. Is it costly to hire really good personal injury lawyers? Can you afford to pay them the amount when you are already burdened with medical bills?

    Let’s find out.

    What is Contingency Fee?

    Personal injury lawsuits are handled differently from other cases. Most lawyers take up such cases on a contingent basis. Basically, there will be no initial fee for going through the details or filing the case in court. Instead, the attorney will take a percentage of the settlement amount as their fee. The additional costs are also subtracted from the settlement amount.

    While this is beneficial for the client and the lawyer, it can also mean that the client will take home much less compensation than expected. Furthermore, contingency fees are high. Lawyers charge around 33% to 40% of the settlement amount because they are taking a risk by accepting the case without any initial fee.

    However, it also means that the lawyer will fight to get you the highest settlement amount possible for the case. You and your lawyer can discuss how much you want as compensation. Then add the approximate costs of fighting the case and the attorney fee. That will be the settlement amount you want from the other party. Of course, your attorney will advise you on the right amount to file, depending on the case.

    What happens if you lose the case? In most instances, the lawyer will not take any fee if they lose the case. This allows them to consider each personal injury case on a merit basis and accept only those with a high chance of winning. That said, some lawyers don’t mind gambling and take a risk with a complex case when they know you deserve justice.

    What are Additional Costs?

    As mentioned earlier, a lawsuit attracts many additional expenses. These costs are non-negotiable. You have to pay for these even if you lose the case. That’s because the following costs are incurred by anyone who files a lawsuit.

    • Court filing fees
    • Costs to access police reports
    • Costs to get medical records
    • Expert witness fees
    • Court reporters fees
    • Trial exhibits fees
    • Copying fees
    • Postal charges

    It can be difficult to exactly estimate how much the costs would be as they differ from one case to another. The longer the trial runs, the higher the additional expenses to keep it going. On average, the court and additional costs will come up to 10 or 15% of the settlement amount.

    Your attorney may send you monthly bills to pay the court’s costs or maintain a record of all expenses and deduct it from the settlement amount. You can negotiate it with the lawyer.

    For example, you get a settlement amount of $100,000 after winning the case (this will be provided to the lawyer by the insurance company). Your attorney will deduct their fee (40%) from this amount.

    $100,000-$40,000 = $60,000

    The court costs will be deducted from the remaining amount.

    $60,000-$15,000 (court costs) = $45,000

    $45,000 is the final compensation amount you will receive from the lawyer.

    Talk to your attorney about various costs and ask for ways to reduce additional expenses. The final amount you get depends on how well you negotiate with your attorney. Remember that the lawyer will have to provide you with a detailed record (in writing) of the expenses and their charges.

    Conclusion

    In most cases, it is advisable to have a written agreement with the lawyer about their fee and other expenses related to the case. This ensures that you know how much you will have to pay the attorney and the range of costs involved in fighting a lawsuit. Similarly, the attorney will be cautious about running up additional costs as they are bound by an agreement. This will prevent further complications between you and the lawyer.

  • How to Avoid Bankruptcy While Running a Startup

    Millions of people these days are trying to establish their startups despite having a simultaneous regular job only to make sure that their total gross income is enhanced. A startup of any magnitude is a great independent source, of increasing your income, and if you can establish the business well, you can also take it up as full-time work and ensure that your source of income through the startup is stabilized.

    According to a survey, 90% of startups fail. The basis of any startup is the capital investment, and if you are trying to establish a business, there would be a certain amount of loan that you would have to get. The startup usually has a higher risk of falling victim to bankruptcy. There are different types of loan policies, and then there is a chance of loss at the startup, and hence the chance of bankruptcy also increases.

    Main reasons for business failure among startups worldwide in 2021
    Main reasons for business failure among startups worldwide in 2021

    In this article, we will talk about the steps that can be taken to avoid the bankruptcy of a startup. So, let’s take a look at it.

    Managing the Expenses
    Careful Planning of the Month
    Secondary Income Source Till the Business is Stabilized
    Cutting Out the Optional Expenses
    Debt Settlement Lawyer

    Managing the Expenses

    You may wonder what you can do to make sure that the profit is high while all kinds of expenditures are well managed. There are different types of expenses associated, and when you have a thorough understanding of these, you can easily plan your expenses well.

    Here, we are going to guide you regarding budget management for any kind of startup as well as how to ensure that you can avoid bankruptcy no matter how many loans you have to worry about. There are many aspects of the expenses associated with the startup and when you have a clear conception of them planning the budget for your company becomes easier. The chances of failure of your startup lessen. You would also be able to take the help of the finance department for better planning too.

    An Expense Management Software
    An Expense Management Software

    Expense Management Software is another option that helps businesses, big or small, keep track of their expenses. They let businesses manage their spending, prepare budgets, manage various expense-related reports and do much more seamlessly which helps save much time.

    Careful Planning of the Month

    You may have different requirements every month, but when you have a proper plan about the expenses you would incur and stick to it, it becomes easier to understand how much you save as well as control the expenses as well. Plan the next month’s schedules and the possible expenses ahead of time and then try and follow the schedule to ensure that you are getting the best possible output from your company at the minimum expense.

    This way, you would be able to keep track of every expenditure within the startup as well as have proper control over them. This is essential to make sure that your business can maximize the profit and hence paying off the loans would become much easier.

    Secondary Income Source Till the Business is Stabilized

    If you have a regular job or any other source of income apart from the startup, then do not let them go unless your startup is stabilized and is fetching home a good turnover. This would ensure that you have some other option to manage the debts when your startup fails and you are suffering loss.

    If you do not have a secondary income source, you can as well look for it so that there is an alternative to handle your finance when there is any loss at the startup. Any of the family members too can join a regular job and together, you can pull the income and ensure that you have enough money to ensure complete security on the financial front despite paying for the debts.

    Cutting Out the Optional Expenses

    When you are trying to find out the different types of expenses that your startup has, you will discover several expenses that can be avoided or can be substituted with a cheaper alternative. Make sure that you are cutting them out and saving money.

    It may seem less, but over time the amount that you have saved from such minor sources would be the reason why you can pay off your debt easily, and this is elemental to make sure the startup does not go bankrupt. This is a significant risk that people in business are afraid of and this is why many are apprehensive about establishing a business of any kind at all. The risk factors are often considered too high and simply not worth it.

    Debt Settlement Lawyer

    A Digital Banking and Lending Platform
    A Digital Banking and Lending Platform 

    Every startup and seasoned business needs a debt settlement lawyer for any relevant legal advice. You can hire a lawyer permanently, and he or she would be able to handle all your debt troubles for you.

    The lawyer will help you with paperwork, and make the loan process quick and easy. They can help you get loans at a lower interest rate.

    Conclusion

    The failure rate of Startups is very high. Only a few remain in operation after a year or later as they have to shut down mainly due to bankruptcy. Proper management of expenses, settling debts, having secondary income sources, cutting out the extra expenditures, and hiring a professional lawyer can help you avoid bankruptcy.

    FAQs

    What can I do to avoid bankruptcy?

    You can avoid bankruptcy of your company by:

    • Cutting excessive spending
    • Managed and planned Expenditure
    • Earning more profits
    • Settling debts
    • Using professional help

    Do bankruptcies hurt your credit score?

    Yes, your credit score can be hampered by bankruptcy as it will remain in the credit reports. This might change the way the lenders see you and it might result in them being unwilling to loan you.

    What are the three most common causes of bankruptcy?

    Running out of cash, not having a market need and getting outcompeted are the three most common causes of bankruptcy.

  • 6 Things to Consider Before Becoming a GC From an Associate

    As you have been enjoying the perks and the higher than average salary in a law firm, but now you are thinking of becoming the General Counsel (GC) of your own firm. So, what happens next? In the legal profession,  the next step of an associate in his career is to become a GC or a General Counsel. A general counsel is a chief lawyer of the legal department in a company.

    Although being your own boss is a rather tempting idea, it is fundamentally plastered with certain inherent problems and issues. This is because being a general counsel includes a lot of effort and hard work. This is particularly so because the work of a general counsel never ceases. Thus, the person who is contemplating such a tectonic shift in his career must know and understand certain key factors.

    In this article, we will talk about 6 things that you must consider before becoming the General Counsel from an Associate. So, let’s take a look at it.

    Developing Legal and Non-legal Skills
    Seeking a Comprehensive Sectoral Understanding
    Strategize Your Business Right
    Build Better Relationships
    Knowing the Stakeholders
    Stepping Outside Your Comfort Zone

    Developing Legal and Non-legal Skills

    The esteemed role of GC might sound tempting, but it’s not that simple! There’s a difference between being an associate in a law firm and working in the office of general counsel. For the latter, a command over the legal and non-legal skills is very important – but not in quite the way that you’d expect. You may not spend your entire day arguing in court and validating legal points, but you will be validating business by communicating with the clientele.

    One very important element that is a part of a GC’s primary duties is handling matters related to a company’s business development and advising them on every issue in the periphery of operations. This is why general counsels are always busy and don’t even have enough time to stand and wait in one place!

    Seeking a Comprehensive Sectoral Understanding

    The core competency of a general counsel stems from a holistic understanding of the domain or the industry in which the company operates. Thus, it is essential that you build a holistic understanding a develop a complete knowledge of the sector or the industrial segment in which your company tends to operate.

    This understanding should not be myopic or restricted merely to legal and compliance standards. Neither should you concentrate more on regulatory knowledge only. A complete understanding of this sector stems from an overview of all nuances relating to the industry’s practical working and business trends and governing conventions in general.

    Strategize Your Business Right

    It is amazing to know how some GCs can turn young businesses into hugely successful corporations. This rapid growth is attributable in no small part to proper planning and strategizing. Most GCs are not aware of their company’s corporate or financial position, and it goes downhill pretty quickly from there.

    The business strategy primarily covers both the parts of learning about the business and planning it well to manage it better. Ascertaining all relevant information is integral to planning your company’s operations. As GC, you will need to pay attention to these minute details and create the right strategies to propel your business to the top. Thus, at its core, strategizing includes gathering information on all corners of the business and then involving each corner in the mainstream business.

    Build Better Relationships

    Relationship management is a serious business in the legal world. A general counsel should not just be concerned with what is happening externally in the industry. He should also focus on the workings of the company also. In order to do that, as an associate GC, you should start by developing a keen idea about the company and its workings.

    Not just that, but you should also be aware of the various people who are working within the organization, what their profiles and designations are, and what their jobs entail. Building better relationships and networking with fellow employees and peers helps you gain the right knowledge about the organization’s internal values and culture. An associate GC who identifies with the organizational ethos and has a complete understanding of the company’s internal work and functionalities can better fulfil his role as a general counsel.

    Knowing the Stakeholders

    To be a general counsel, it is very important to know the various parties and the stakeholders involved with the company. The various stakeholders of the company are important points of consideration for an aspiring GC. Understanding their perspectives manifests almost entirely from perfect listening skills.

    In fact, if an organization wants to better understand the stakeholders’ needs and expectations, it’s kind of impossible not to listen to their concerns. It offers better insight into what drives and motivates them.  It is by completely understanding the drivers you can be equipped to advise them of the best possible recourse for the company in any given scenario.

    Stepping Outside Your Comfort Zone

    As a general counsel, it is your job to contemplate the right decisions for the company’s benefit and advise the same to the senior management. Occasionally, this might entail the need to shoulder certain risks and advise from a commercial perspective. The ultimate agenda to do this is to ensure that the company’s problems and grievances are redressed and that they can go about their businesses in a more productive capacity.

    This job’s primary responsibility is to support your company through proper problem-solving abilities and ensure complete compliance even if the resulting problem is outside your comfort zone. This is the reason that helps you maintain positive relationships with colleagues, staff, and other members of senior management. Who knows, maybe their recommendations can help you to transition from the associate general counsel to bigger, better, and greener pastures.

    Conclusion

    These days, the competition and search for better opportunities have become tougher. This means that there still has to be twice the effort for a normal candidate with the right profile. Hence, it is important to understand that one needs to chalk out a few details before committing full time to the cause. A general counsel’s job is anything but easy, and you quite simply will run out of time and patience on multiple occasions. So it would be better if you stay prepared for the first instance.

    FAQ

    Who is a General Counsel?

    A General Counsel is a chief officer of a legal department of a company.

    Who should a General Counsel report to?

    A General Counsel should report to the CEO of the company.

    Do you need to be a lawyer to be a General Counsel?

    To be a General Counsel one needs to be an expert in both law and business.

  • How to Manage Legal Compliance Issues in Startups

    The article is contributed by Mr. Dhiresh, (Co-Founder & C.E.O.), Neem Tree Agro Solutions.

    The fresh wave of Startups and young Entrepreneurs has started in India, which has resulted in the average age of Entrepreneurs in India to keep reducing by every passing day. Youngsters have stepped up for these initiatives with sheer will and confidence. Therefore, the enthusiasm may be high but industry experience is nearly non-existent. This makes managing legal compliance a strenuous task to carry out.

    Startup word is usually more related to freshly churned out ideas and innovative discoveries and less towards legal bindings, security and proper documentation. Due to lack of resources or maybe just deficiency of proper knowledge, they tend to skip the legal compliance issues. Ideal model should be framed in such a way that it compliments the entire process keeping the legal compliance as the premise, because the lack of it confines you and causes scaling issues, which isn’t good for any startup that is looking to grow and expand exponentially.

    On the other hand, even after learning about proper legal compliance techniques it is tough to maintain regulatory compliance such as reporting the GST and seed licensing returns, which prove to be too expensive for a startup. Furthermore, as India is a Union of States, compliance varies from state to state, particularly in the agriculture industry, which is a subject of state government rather than the Union government.

    Top 5 Best Legal Online Services for all Your Legal Needs in 2022
    Looking for an online legal service?. Here we have rounded up some of the best online legal services in India in 2022.
    StartupTalkyBhoraniya Huda Hifzur Rehman

    One of the first things that comes to mind is that you need to get yourself a lawyer in case something goes south, one needs to consider the monetary license which one has access to. Due to likely issues with money it is sensible to look at certain online facilities available which helps startups get through initial blues, they can be vague and generic but might help you in gaining some knowledge alongside with a different perspective.

    Certain skills, such as verifying the term sheet, are perfected over time. Legal compliances also play a huge role during the fundraising process. So, the first and most important step is to keep your documentation and paperwork in order if you are looking for funding. You should follow all legal rules and regulations set forth by the government and stay up to date with them.

    Lack of human resources is a very pertinent problem among all the newly emerged startups, due to which they often lack in getting things updated, but you need to keep in mind that you should cover all the moral, ethical and legal grounds. Knowing your obligations as an employer, such as adhering with all necessary labor laws, is a crucial part of beginning a business. This involves obeying salary payment, provident fund, and gratuity rules, as well as workplace sexual harassment, maternity benefits, and other policies. If your company is registered with the Startup India programme, you can sign a self-declaration and be exempted from inspection for the first year from the date of incorporation or partnership registration for some laws.

    Internal legal agreement is also an essential part of the legal compliances. It is an arrangement if there are more than one founder, and if somebody decides to leave or join, they should do it in a complete legal manner which is in full agreement of the other founders. Another agreement that plays an important role is the Intellectual property agreement. This agreement should include confidentiality responsibilities for the company’s information, as well as a current assignment to the company of any intellectual property that the person has developed or may develop in the future (while working with the company).

    The lack of proper licensing can also lead to difficulty in running your Startup. As stated earlier, each state may have its own set of licenses and even different industries adhere to different rules set by the state governments or government declared regulatory committees, such as, Import-Export laws, FDI Policy, SEBI/RBI regulations, etc.

    Approval of financial accounts, declaration of dividends, appointment of auditors, and other special business agendas are on the AGM’s regular business agenda. The AGM must be held in the jurisdiction of the company’s registered office. The first annual general meeting (AGM) must be convened within nine months of the end of the first financial year. In the event of a subsequent AGM, it must be convened within six months of the financial year’s end. Every year, there shall be one AGM, with a maximum gap of 15 months between two AGMs.

    Ignoring these difficulties can impede your fundraising efforts, and certain litigations may be brought against your company. When someone invests in your vision, he will look to see how solid your legal foundation is. Your balance sheets must be kept up to date, and your transactions must be clean and traceable. Since resources are limited, it is not an easy task but if you work on it properly, the rest of the process will go smoothly.

    Startup India has taken several noteworthy steps to make the startup process easier. Under the several schemes introduced by the government, it can be seen that they want the number of startups to go up and want the youth to come up with exciting ideas. This shift that is being carried out will result in increased employment, better economy, people becoming independent and many other positive effects. On the other hand, the government needs to work more to reduce the legalities that exclusively apply to startups. This will be a big relief for new startups, as well as a motivator for others.