Do I need a Lawyer to Form a Business?
If you are starting a new business, it is important to select the right legal structure for it. You will likely hear from many people that you can file the documents to incorporate your entity without the help of an attorney. However, the process of filing the paperwork is not the difficult part. The reason you need the help of a lawyer is to address the following matters:
- Selecting the best entity for your business. There are pros and cons to each type of legal structure, so you need a professional to educate you regarding the tax consequences and the administrative requirements for each. State regulatory bodies may also restrict the name or type of entity allowed for various business activities. The type of entity you form can have serious consequences for the life of your business.
- Answering the forms. The paperwork may seem like you are just checking a few boxes and answering simple questions, but how you answer the questions is extremely important. Who should you name as your registered agent? Should your LLC be managed by a manager or member? What kind of stock will your corporation issue?
- Other requirements. There is more to getting your business ready to operate than just forming the legal structure for it. You must also obtain the necessary state and local business licenses. You will need to obtain an employer identification number (EIN) from the Internal Revenue Service (IRS) and other required tax filings. Along with the EIN, you will need to determine how your entity will be taxed; will it be a partnership, an S-Corporation or a disregarded entity? Also, you must consider obtaining insurance or bonding needs.
- Internal documents. Your entity must have certain governing documents such as a partnership agreement, shareholder agreement, bylaws, operating agreement, and other similar documents.
- Employees. If you are going to hire employees there are a variety of laws you must comply with. Your attorney can make this process much easier.
At Nielsen Law Group, we will not only help assist with what is the best structure for your business, but will also aid with the additional details that will foster a strong foundation and get you started on the road to success. Whether you need assistance forming your new business entity or establishing a more sophisticated corporation or non-profit organization we will be able to guide you the entire way. You can schedule your initial consultation by calling (480) 888-7111 or submitting a web request here.