Hiring Legal Help With Business Formation

If you are starting a small business, you may have a number of questions concerning the proper organization form for your business’s needs. What are the advantages of incorporating your small business? What should be included in a partnership agreement? How is a sole proprietor taxed?

Whether you need advice on choosing the right business organization form or would like help getting your new sole proprietorship, partnership, corporation, or limited liability company (LLC) up and running, an experienced small business attorney can provide key assistance with your new business venture. At each step of the business start-up process, your attorney will work to ensure that all legal bases are covered. They also help ensure your new business has the best possible chance for success.

This article provides a brief overview of how a business law attorney can help you as you start your business.

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How a Small Business Attorney Can Help

No matter what type of business organization/start-up issue you face, a business attorney can help you find the right solution for your new business and take all necessary actions to get your business’s doors open, including:

• Describing the different legal entities available to your new business (sole proprietorship, partnership, corporation, limited liability company, etc.)

• Explaining all tax, business liability, management, and start-up cost issues relevant to each business organization form

• Helping you consider all factors and choose the right business organization form to meet your new business’s needs

• Drafting all necessary partnership agreements for new partnerships, articles of incorporation and bylaws for new corporations, articles of organization, and operating agreements for new LLCs

• Drafting and filing all government registration documents necessary for your new business, including fictitious business name registration

• Drafting all necessary tax forms to get your new sole proprietorship, partnership, corporation, or LLC up and running

• Securing all necessary business start-up permits and licenses from local, state, and federal governments

• Helping you decide whether you will need an Employer Identification Number (EIN), which your attorney can help you apply for online

Using an attorney helps you find the best business structure for your goals and helps you meet all the legal requirements to keep your business in good standing with the state.

Choosing the Right Business Entity

When you start a business, you have to pick the right type of business structure. This is where the term business entity comes in. The structure you choose, like a C corporation, limited liability company (LLC), limited partnership (LP), or a limited liability partnership (LLP), will affect how you pay taxes and your personal liability. 

A business lawyer is experienced in business law and formation services. They can help you decide which structure is best for your business plan. If you’re in Illinois, for example, there may be specific rules for setting up a C corporation in that state. A lawyer will know these details and guide you through the process.

Beyond the startup phase, ongoing legal support is essential. As the business grows and evolves, a lawyer can assist in additional areas.

Protecting Your Ideas and Property

Your business might have special ideas or creations. These can be protected through intellectual property laws. Without legal help, someone else might copy or steal your business ideas. A business lawyer can provide legal services to help protect your intellectual property. This way, only you and those you choose can use your ideas without legal consequences.

Understanding Legal Documents and Information

Starting a business means dealing with a lot of legal documents. These can be hard to understand. You need to know what they mean for your business needs. A business lawyer can give you the legal information you need. They can also ensure you fill out and file these forms correctly. This includes things like leases for real estate or forms for the Internal Revenue Service (IRS).

Avoiding Legal Issues

No one wants to run into legal problems, especially small business owners, but sometimes legal issues can arise. Maybe there’s a disagreement with a shareholder, or perhaps there’s a question about how you’re doing your tax return. Having a business lawyer means you may have someone to turn to for legal matters. 

As the business landscape and laws change, having a legal professional by your side ensures that the business remains compliant. It helps mitigate risks and ensures you are well-prepared for future challenges and opportunities.

Additional Resources

• Business Formation Resources

• Business Formation Quickstart

• State Guide: Forms and Fees for Business Formation

Finding a Small Business Attorney

If you’re considering starting a business, it’s in your best interests to consult with a business formation attorney for legal guidance. An attorney will offer legal advice and help you pick the type of legal structure that’s right for you and your business.