is a lawyer needed when starting a business

Is an attorney essential when starting my business?

Jan 16, 2018 · Among the countless worries for entrepreneurs who are starting or are already running a small business is the question of whether they need a business lawyer. The perception is that attorneys charge high rates and many small businesses don't have much, if any, extra capital with which to pay lawyers. As a result, most small business owners only hire an …

How to hire a business lawyer?

Jan 06, 2018 · When you first start a business, you might not be worried about things, such as lawsuits, but that doesn’t mean you don’t need a business lawyer. In fact, it’s probably more important for you to have a good business lawyer in the beginning because all of the paperwork needed to make your business legit can easily get confusing.

What does a corporate lawyer actually do?

Nov 27, 2018 · In most cases, you're going to need the services of a lawyer for your startup, perhaps for tax services or employment law compliance. Whatever the reason, make sure you contact the right attorney for your needs.

How to find a startup lawyer?

Mar 28, 2019 · When starting a new business venture, entrepreneurs should make sure they’re complying with all the legal obligations of running a small business. There are a range of legal requirements for new businesses and startups, including financial regulations, tax obligations and employment laws.

Why do I need an attorney?

The most common reasons for needing an attorney are: 1 Navigating the many forms and requirements of legal documents, like incorporation documents, that are involved. 2 Assurance the startup is being done right. 3 Enabling you to focus on other aspects of the business so you don't have to spend time learning the legal processes. 4 Support with specific tasks like trademarking your name, reviewing lease documents, discussing potential legal structures, and preparing incorporation forms. 5 Online legal form providers don't always do it right. Businesses aren't one-size-fits-all, so blanket legal documents don't always work.

Can I register my business online?

You might be able to register online with your state or use an online service to register your business, but it might be a good idea to use an attorney if your business is at all complicated. Corporations or S corporations must register with the state as well.

Do I need an attorney to start a business?

The simpler your business, the less you'll need an attorney. A sole proprietorship is the simplest business form. It doesn' t require that you register your business with your state, so no, you probably don't need an attorney ...

Issues You Can Handle on Your Own

There are certain matters that are fairly straightforward and/or not unduly difficult to learn and therefore do not require the services of an attorney who charges at least $200 per hour. There are enough expenses associated with running a business, why not save yourself a load of money and do it yourself if you can?

Issues Where You Will Need a Business Lawyer

Most of the issues outlined above can be handled by any intelligent business owner (if you can run a business, you can certainly fill out IRS forms or fill in boilerplate business forms). There are times, however, when a business faces issues that are too complex, too time consuming, or fraught with liability issues.

An Ounce of Prevention

While you certainly need to retain an attorney for the serious issues above, your emphasis should be placed on preventing such occurrences in the first place. Prevention does not necessarily involve hiring an attorney, though consulting with one wouldn't hurt.

Get in Touch with a Business Attorney Before You Need One

You won't need a lawyer for each and every legal issue that comes up in your business. But when you do, it's good to know where to find the right one. And -- more to the point -- you may not know you need legal help until it's too late, as attorneys can help you stay in compliance with the law and spot developing legal issues early.

You may not need to hire a lawyer as soon as you think when starting a business

Once you have a great idea for your start-up business, do you need to hire a lawyer to help you get started? Not necessarily. A lot of the initial steps related to choosing and forming your business entity you can do on your own.

Deciding on Your Business Structure

You will need to decide what type of ownership structure makes sense for your new business. Most states have information on their secretary of state (SOS) website about the different types of business entities you can choose from—solo proprietor, LLC, corporation, and partnership.

Checking for Name Availability

Choosing a name for your business is another initial step you will need to take. While there are some legal requirements related to naming your business, this can usually be done quite easily without the help of a lawyer.

Forming Your Business Entity

Once you have decided on the business structure and a name of your new business, you are ready to form your business entity. If you've decided on a sole proprietorship or partnership, you won't need to file any forms or pay any fees (although partners should enter into a partnership agreement).

Operating the Business

Once the formation tasks are done, you can focus your energy on getting your business up and running, figuring out the best way to sell your services or products, and creating the online presence you want.

What is the most important thing to consider when starting a new business?

The only thing more crucial to a new business is liability . 1. Liability. Different business forms provide different protections and risks to the business owner/investor. Personal liability means that your business puts everything you own at risk. An attorney can help you avoid this situation or minimize your risk.

What are the most important things to do in business?

10. Contracts. Most businesses execute contracts for space, services, and supplies. Businesses often have agreements between partners, investors, and employees. It is important to get it right so you don't end up in court. 9. Registering, Licensing, and Permits.

What is the choice of business form?

The choice of business form (i.e. sole proprietorship, partnership, LLC, or corporation) often dictates the legal responsibilities and potential liability of those involved in leading the business, as well as the manner in which it may operate.

Can I do business in another state?

The preconditions to forming and conducting a business entity in one state may not be accepted in another state. If you are not careful, the protections you have in your home state of operations may be lost if you do business in another state. See the State Business Laws section for more details. 6. Strict Conformity.

Do I need a lawyer for my startup?

In most cases, you're going to need the services of a lawyer for your startup, perhaps for tax services or employment law compliance. Whatever the reason, make sure you contact the right attorney for your needs.

Can I start a business by myself?

Some people opt to start the business by themselves or with family members, while others have partners or other investors who will not be involved with the day-to-day affairs of the business. The laws that apply to start-up businesses differ based on the specifics of the situation, and even business people who decide to go it alone have options ...

What are the legal requirements for a new business?

There are a range of legal requirements for new businesses and startups, including financial regulations, tax obligations and employment laws. Make sure your new company complies with all its legal responsibilities so you can get back to focusing on growing your business.

How to ensure you have covered all your legal responsibilities as a new business?

To ensure you’ve covered all your legal responsibilities as a new business, it’s a good idea to consult professionals for advice. Consider sitting down separately with both a lawyer and an accountant to make sure that your company is covered from a legal and a financial standpoint before opening for business.

How does insurance protect a business?

Business insurance can protect you in cases where the personal liability protections offered by your specific business structure aren’t enough. Business insurance can protect not just your personal assets, but your business assets as well.

What does LLC mean in business?

This means that if your business is sued or if it declares bankruptcy, your personal assets including your home and vehicle won’t be at risk.

What is a C corp?

Corporation: A corporation, or C corp, is a company that is legally a separate entity from its owner or owners. Corporations offer the greatest level of personal protection from liability out of all business structures. However, they’re more expensive and complicated to form.

What is a DBA?

A DBA (Doing Business As): doesn’t offer legal protection, but may be required, depending on your location and business structure. A domain name: claims your business’s web address.

What is an EIN number?

Your federal tax identification number is known as an Employer Identification Number (EIN) and it allows you to legally hire employees, pay federal taxes, apply for business licenses and open a business bank account. You can apply for an EIN through the IRS website. Your business will need an EIN if you plan on doing any of the following:

Which is better, a corporation or an LLC?

A corporation or LLC is generally a better choice as your business grows, particularly if you're planning to secure a business loan or raise venture capital. 2. Check which licenses, permits, and registrations your business needs.

What is email marketing?

Email marketing is a huge part of many businesses. When you send emails to your customers or when you are targeting potential customers via email campaigns, you need to find out what the applicable email regulations are. Note that each country has its own set of rules.

What is privacy policy?

A privacy policy is a legal statement that specifies what a business does with the personal data collected from users or customers, along with how the data is processed and why. Violation of privacy laws can lead to criminal liability—depending on your state, this can mean hefty fines—so it’s important that startups have proper privacy policies in place and carefully adhere to them. The Small Business Administration has a great guide for establishing an appropriate privacy policy for your business.

Do you have to record all business transactions?

In most places, you are obligated by law to record all business transactions according to a specific accounting method. See what’s required of you for your industry and location in terms of record-keeping obligations, and set up a proper filing and bookkeeping system for all documents and transactions.

Do you need workers compensation insurance in Texas?

In all states but Texas, most businesses with employees are legally required to purchase workers compensation insurance. Coverage should begin from the very first day your employee starts working. This insurance covers medical and legal costs associated with work-related employee injuries and illnesses. State laws about workers compensation vary, so make sure you check your state's rules.

Who is Priyanka Prakash?

This article originally appeared on JustBusiness, a subsidiary of NerdWallet. About the author: Priyanka Prakash is a writer specializing in small business finance, credit, law, and insurance, helping business owners navigate complicated concepts and decisions.

What is a good business attorney?

A good business attorney will provide vital assistance in almost every aspect of your business, from basic zoning compliance and copyright and trademark advice to formal business incorporation and lawsuits and liability. First, some general rules about dealing with lawyers:

What skills do you need to be a lawyer?

You will need a lawyer who can understand your business quickly; prepare the standard form contracts you will need with customers, clients and suppliers; and help you respond to contracts that other people will want you to sign. 2.

How to bill a lawyer?

For many entrepreneurs, the idea of consulting a lawyer conjures up frightening visions of skyrocketing legal bills. While there's no denying that lawyers are expensive, the good news is there are more ways than ever to keep a lid on costs. Start by learning about the various ways lawyers bill their time: 1 Hourly or per diem rate. Most attorneys bill by the hour. If travel is involved, they may bill by the day. 2 Flat fee. Some attorneys suggest a flat fee for certain routine matters, such as reviewing a contract or closing a loan. 3 Monthly retainer. If you anticipate a lot of routine questions, one option is a monthly fee that entitles you to all the routine legal advice you need. 4 Contingent fee. For lawsuits or other complex matters, lawyers often work on a contingency basis. This means that if they succeed, they receive a percentage of the proceeds--usually between 25 percent and 40 percent. If they fail, they receive only out-of-pocket expenses. 5 Value billing. Some law firms bill at a higher rate on business matters if the attorneys obtain a favorable result, such as negotiating a contract that saves the client thousands of dollars. Try to avoid lawyers who use this method, which is also sometimes called "partial contingency."

Why do I need an accountant?

The reasons for hiring an accountant are pretty obvious--you need someone to help you set up your "chart of accounts," review your numbers periodically, and prepare all of your necessary federal, state and local tax returns. The reason for hiring a business attorney may not, however, be so apparent. A good business attorney will provide vital ...

Is a lawyer a solo practitioner?

Over the past 20 years, lawyers have become incredibly specialized. If you use a solo practitioner or small firm as your lawyer (s), it's likely that they will not have all the skills you may need to grow your business .

Is a lawyer a good fit for a business?

Like doctors, lawyers are becoming increasingly specialized. Someone who does mostly wills, house closings and other "non-business" matters is probably not a good fit for your business. At the very least, you will need the following sets of skills. The more skills reside in the same human being, the better!

Do lawyers know everything?

No lawyer can possibly know everything about every area of law. If your business has specialized legal needs (a graphic designer, for example, may need someone who is familiar with copyright laws), your attorney should either be familiar with that special area or have a working relationship with someone who is.

What are the legal requirements to start a business?

1. Protect your personal assets. The most important thing to consider when launching your own business is how you intend to protect your personal assets.

What is limited liability company?

A limited liability company, as the name implies, limits the degree to which you as the business owner are liable for damages incurred by customers. Thus, a customer who sues your company after receiving a faulty product or inadequate service won’t be able to touch your personal finances or bank account.

Do you need workers compensation insurance?

Offering worker’s compensation insurance to those who are injured on the job and incapable of providing for themselves, for instance, is required in most of the United States.

Can an LLC protect your assets?

Even those that are successful might find themselves the victim of an unjust lawsuit that eats up time, money and energy. To avoid a lawsuit being the end of not only your business but also your personal financial security, it’s imperative to protect your assets by forming an LLC.

Deciding on Your Business Structure

• You will need to decide what type of ownership structure makes sense for your new business. Most states have information on their secretary of state (SOS) website about the different types of business entities you can choose from—solo proprietor, LLC, corporation, and partnership. There are also many online and other resources available to help you understand your choices. F…

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Checking For Name Availability

Forming Your Business Entity

Operating The Business