Starting a business is an exciting venture but comes with legal steps before it can get up and running. Many new business owners find it helpful to work with a business lawyer for advice. This is to ensure that all the necessary paperwork is understood thoroughly, every legal requirement is met, and all applicable laws are followed.
If you’re thinking of starting your own company, read on to learn more about how a business lawyer can help you.
How Business Lawyers Can Help
From leasing the building to agreements among partners and investors, business lawyers have invaluable knowledge and expertise to help you get started. Your business lawyer can help in the following ways:
Drafting And Reviewing Contracts
There are many contracts involved in starting a business. There’s paperwork for leasing a building for the place of businesses, as well as employment guidelines and other legal matters. Whether your business is big or small, there are agreements that must be made among anyone partnering, investing, or employed by your business. These “agreements” include LLC operating agreements, loan contracts, and other disclaimers.
A business lawyer can help you review all of these contracts to ensure that everyone’s rights are being protected. Having a lawyer to guide you during this process can help you avoid any legal issues once your business is up and running.
Explaining Registration, Licensing, And Permits
All businesses are required to register with the city, county, and state in order to be recognized as legal and valid. There are many business types and structures, but even those without formal registration still have to obtain certain permits and licenses. Registration and renewal can be confusing when you’re just starting out – especially if your business structure requires multiple registration processes.
If you’re unsure which type of registration your business requires or even which business type you have (it could be more than one!), a business lawyer can help you be compliant with state laws.
Help Understanding Strict Conformity
Certain business entities require strict conformity to laws regarding business forms. That means an LLC’s articles of organization need to be filed, along with filing fees. A registered agent with the state is required to be appointed, but a business lawyer can ensure that your business aligns with the appropriate state laws. Otherwise, the business could lose certain benefits and protections, particularly those that have to do with liability.
Your business attorney will look out for the best interests of your business, making sure it’s protected every step of the way.
Understanding All The Money Issues
Before your business can start making money, you first need money in order to start the business. You should always keep records of income, donations, and distributions for full financial accountability. The procedure for raising capital will depend on the business entity. A business lawyer will be aware of the requirements for each entity type. This will help you avoid tax issues and liabilities.
In addition, your lawyer will help you draft a business plan that communicates all the goals you want to accomplish, which you can present to your potential investors.
Choosing The Right Business Formation
Every business has its own structure, which dictates the responsibilities you have as a business owner. It also affects the way your business will be taxed.
A few examples of business structures include:
- Partnership: A partnership is an agreement between two or more people to start a business, with each party contributing labor, skills, property, and other shares into the business.
- LLC: A Limited Liability Company, or LLC, is when a business structure is determined by regulations set by the state. Ownership is generally not restricted, so the business owners could be multiple individuals, other LLCs, or corporations. However, an LLC can also have a single owner. The most important feature of an LLC is that it gives protection of the owner’s personal assets from being liable or being placed at risk due to the operation of the business of the LLC.
- Corporation: Different shareholders exchange money or property (often both) in order to form a corporation, thus building capital stock. Some deductions are taken as a sole proprietorship in order to determine taxable income. Corporations, like limited liability companies, give protection to personal assets of the shareholders.
- Sole Proprietorship: A sole proprietor is someone who, as the name implies, is the sole business owner.
- Each type of business has its own responsibilities as liabilities. Choosing the wrong business entity can have serious ramifications, which is all the more reason to consult a business attorney.
Help Understanding State Business Laws
In many states, “uniform laws” fill the gaps that different business entities are silent on. That means your corporation or LLC could be subject to a set of laws or regulations that you might not be aware of. However, your business lawyer will be. Their job is to make sure you’re aware of these laws and to prepare you for the legal ramifications so your business remains valid and protected.
Help Understanding Tax Liability
Taxes are always a certainty with any type of business. There are different advantages and disadvantages for certain business types, so it’s crucial to have a business lawyer explain each one. Having a valid employer identification number from the IRS is a requirement and will be obtained for you by your attorney while he or she is creating the legal entity that you choose to operate under. Your business lawyer can explain Florida’s business tax laws so you fully understand the requirements and ramifications.
Avoid Additional Legal Issues
There are different risks and protections associated with different business formations, owners, and investors. No matter what type of business you have, personal liability is the biggest factor to consider. No one wants to consider potential risky situations when starting a new business venture, but it’s a reality that must be dealt with. A business lawyer will help explain liability issues and how to protect yourself from them.
Business Lawyers in South Florida
Starting a business is exciting but can also be complex and confusing. Let the business lawyers at Handin Law help get you started so you don’t have to decipher confusingly worded documents by yourself. Our expertise has helped many Floridians start and run their own successful businesses. We are excited to partner with you in this new venture.
For questions about our legal services, call today at 1-877-815-4560.