When you start a new business, it is essential that you choose the right legal structure for it. Many people believe that they can file the documents needed to incorporate an entity without the assistance of a lawyer, but filing the documentation is not the difficult part. Below are a few of the reasons you should seek the assistance of an attorney:
- Choose the best legal structure. There are advantages and disadvantages to each type of legal entity, so it is important to confer with legal counsel to determine which type is best for achieving your goals. You should consider the tax consequences and the corporate formalities for each. The legal structure you choose for your business will impact your entity for its lifetime.
- Completing the paperwork. The forms you must complete when selecting your legal structure may appear simple, but how you answer each question is very important. Who is the appropriate party to name as your registered agent? Will your LLC be managed by a manager or its members? What type of stock will your corporation issue?
- Governing documents. All legal entities require an internal document that governs the operation of the business such as a partnership agreements, operating agreements, shareholder agreements, bylaws, and other similar documents.
- Other requirements. In addition to determining how to structure your entity, you must complete many other tasks before you are ready to operate. For example, you will need to obtain the required local and state business licenses. You will want to obtain your tax identification number (TIN) or employer identification number (EIN) from the Internal Revenue Service (IRS), as well as other tax filings. You must also determine what type of insurance and bonding needs your business has and obtain the proper coverage.
- Employees. There are a wide variety of laws and regulations governing the employer-employee relationship. Thus, you should obtain legal counsel to help ensure you are in compliance when you start hiring employees.
The attorneys at The Swenson Law Firm will not only help you determine what is the best structure for your business, but we will also assist with the additional details that will establish a strong foundation to get your company off to a successful start. Contact us today to schedule your initial consultation.