As a restaurant owner, your passion is right there on the plate. It’s in the perfectly sourced ingredients, the creative menu, the buzzing atmosphere of a full dining room, and the smile on a happy guest’s face. But as any seasoned restaurateur knows, a successful restaurant is a business first, and that means having a rock-solid legal and financial foundation.
While you’re focused on the front of the house, it’s crucial to have a professional watching your back. Partnering with an experienced tax attorney is a key part of this, as they can help you structure your business for optimal financial health from day one. But the role of a great lawyer extends far beyond just taxes; they are a vital partner in nearly every aspect of your daily operations, helping you navigate a complex industry and avoid costly mistakes.
Here are some of the key ways a business lawyer can be an invaluable asset to your restaurant.
Building Your Foundation: Business Structure and the Lease
Before you ever serve your first customer, you have to make two of the most important decisions for your business’s future: choosing your legal structure and signing a commercial lease.
A lawyer is essential for both. They can help you decide on the right business entity—whether an LLC, an S-Corp, or another structure—to protect your personal assets and create the most advantageous tax situation. This is a foundational choice that impacts your liability and profitability for years to come.
Even more critically, a lawyer should review your commercial lease. This is often a dense, complex document filled with jargon, and signing a bad lease can cripple a restaurant. Your attorney can help you negotiate crucial terms like rent abatement, tenant improvement allowances, and exclusivity clauses to ensure the agreement is fair and protects your interests.
Navigating the Maze of Employment Law
The restaurant industry is built on people, which also makes it a minefield of potential employment law issues. A business lawyer is your guide to navigating these complex rules and protecting your restaurant from costly disputes.
They can help you with the following areas:
- Wage and Hour Compliance: Ensuring you are correctly handling tips, overtime, and breaks according to both federal and state laws.
- Employee Handbooks: Crafting a clear, legally compliant employee handbook that outlines all of your policies and procedures.
- Hiring and Firing Practices: Advising you on best practices to avoid wrongful termination claims.
The U.S. Department of Labor provides extensive resources for the restaurant industry, and a lawyer can help you interpret and implement these rules correctly.
Managing Licenses, Permits, and Health Codes
Opening a restaurant requires navigating a complex web of licenses and permits from the city, county, and state. This can include a business license, a food handler’s permit, a liquor license, and more. A lawyer can help you manage the application process to ensure everything is filed correctly and on time, preventing delays in your opening.
Furthermore, if you ever face an issue with a health department inspection, your attorney can act as your advocate. They can help you formally respond to any citations and create a documented plan of correction, ensuring you handle the situation in the most professional and compliant way possible.
Vendor Contracts and Dispute Resolution
Your restaurant relies on a network of third-party vendors, from your food suppliers and linen services to your POS system provider. Each of these relationships is governed by a contract. A business lawyer can review these vendor agreements before you sign them to ensure the terms are fair and that you are protected.
They are also your first line of defense in the event of a dispute. Whether you have an issue with a supplier, your landlord, or even a difficult customer situation that escalates, your lawyer can provide counsel and handle the communication, allowing you to stay focused on running your business.
A great business lawyer is more than someone you call when you’re in trouble. They are a proactive, strategic partner who can help you build a stronger, safer, and more profitable restaurant from the very beginning.