questions to a ask a lawyer when starting an llc

What are good questions to ask lawyers?

Questions to Ask Your Lawyer During a Consultation1) What kind of experience do you have with similar cases?2) What would be your strategy for my case?3) Are there any alternatives to going to court?4) What are my possible outcomes?5) Who will actually handle my case?6) What is my role in my case?More items...•

What are 3 questions you should ask a lawyer before hiring?

Below are ten questions to ask your potential lawyer.How long have you practiced law? ... What type of cases do you generally handle? ... Who is your typical client? ... How many cases have you represented that were similar to mine?More items...•

Who should I consult before starting a business?

5 People You Should Talk With Before Starting a BusinessYour spouse. One of the first people you should talk with about this new venture is your spouse. ... A lawyer. Starting a business involves a few legal hoops, so you'll want to talk with a lawyer. ... An accountant and trusted advisor. ... A business coach or mentor. ... A banker.

What are good questions to ask when starting a business?

17 Questions You Should Ask Yourself Before Starting A BusinessWhy do I want to start a business? ... Can this business idea make me money now and in the future? ... Who is my target audience for my business? ... Who are my competitors? ... What is your USP? ... How will I market my business? ... How will I price my products?More items...•

How do I talk to my lawyer for the first time?

How to Talk to a LawyerBe patient. When you talk to your lawyer, she hears your story for the first time. ... Be prepared. You will need to describe what has happened and what you are hoping your lawyer can do for you. ... Be honest. ... Be specific. ... Be concise. ... Ask questions.

What to say to hire a lawyer?

The Ultimate Guide to Hiring a Lawyer- Tips and Tricks to getting the, "Right Lawyer" for your case.Ask yourself, "Am I Going to Be Comfortable Talking to This Person?" ... Ask, "What is the plan and what is the backup plan for my type of case?" ... Ask, "Who will be involved in my case and how do they work on cases?"More items...•

Should I talk to CPA before starting a business?

Before starting a business, most people know they should consult an attorney, but many don't think to consult a CPA. In fact, it's not just a good idea to meet with a CPA before starting your business – it's a must.

What are four things you must do before starting a business?

Four things you MUST consider before starting a business1) Plan carefully. Starting a business isn't for the faint-hearted. ... 2) Research your market. ... 3) Expand with care. ... 4) It's all down to you. ... Read these before you start your business.

Which six steps need to be taken before the start of a business?

Starting a business is something almost anyone can do in this day and age, but growing a successful business is another matter....Here are six steps to get you started.Have a plan. First, create a written plan. ... Be prepared to fail. ... Do your research. ... Get feedback. ... Have an online presence. ... Find your market.

What are the 4 basic business questions?

The 4 Questions You Need to Ask When Starting a BusinessWhy are you deciding to start the business? This is the most important question to answer before you do anything else. ... What capital do you have access to? ... What do you know how to do? ... If this failed, would you regret it?

What are the three big strategic questions?

He taught that the three most important strategic questions each company must answer are:What is our business? (Mission)What will our business be? (The changing environment that we are certain about)What should our business be? (Vision)

What questions should I ask before joining a startup?

Here are four questions every startup interviewee should ask.What Does Success Look Like for the Company? ... What is the Biggest Risk to the Company? ... What's the Current Runway, and What Are Future Funding Plans? ... What is Current Growth Like?

How will an LLC be managed?

10. How will the LLC be managed? LLCs may be managed by their members (like general partnerships) or by one or more managers appointed by their members (either expressly in the operating agreement or by some voting or approval process). If a corporate model is preferable, LLCs may be managed by boards of managers that function like corporate boards of directors. If the LLC will have a board that functions like a corporate board of directors, how many people will be on the board, and how will those people be selected?#N#11. If an LLC has managers, the day to day affairs of the LLC may be managed by the managers or, if a corporate model is preferable, by officers appointed (usually) by the managers. If the LLC will have managers, will it also have officers? If so, what authority will the officers have?#N#12. If the LLC will have managers, what, if any, actions (e.g., issuances of additional interests, mergers, significant asset sales, significant capital expenditures, borrowings) will be subject to the approval of the members? Will particular members have special approval rights? Will particular actions require higher levels of approval than other actions?

When does an LLC dissolve?

Generally, an LLC dissolves if it becomes bankrupt, if a court orders its dissolution or if it has fewer than the number of members that it must have to continue under state law. In addition, the LLC should dissolve by the vote of the managers and/or some quantum of the members. 20.

What rights do members have to transfer their interests in an LLC?

On the other hand, under a more “corporate” model, the LLC and/or the other members may have only “rights of first refusal” (rights to match third party offers) with regard to transfers. If a consent requirement is not desirable but a right of first refusal is insufficient, members may provide each other with “co-sale rights” in addition to rights of first refusal. Co-sale rights would allow the other members to participate in a sale negotiated by the transferring member. 1 Majority members might also want the right to require minority members to participate in exit transactions. In any event, will certain types of transfers (e.g., intra-family or intra-affiliate transfers) be exempt from transfer restrictions?#N#16. Under what circumstances, if any (e.g., death, disability, expulsion, bankruptcy, termination of service or, in the case of a member that is itself an entity, change of control), will the LLC and/or the other members have the right or obligation to buy out a member? If there will be buy-out rights, how will the price be established, funded and paid?#N#17. To avoid deadlock, should there be a provision permitting a member (or group of members) to initiate a process as a result of which that member (or group of members) will either buy out, or sell out to, the other member (s)? In such a process, the determination of who will buy and who will sell is usually made by the non-initiating member (s). The price is usually determined by the initiating member (s) or by some valuation procedure.#N#18. Will all the members have the same rights to participate in buy/sell transactions (or will some members have greater or lesser rights than other members)?

What is a limited liability company?

Limited Liability Companies. One of the most common entities created today is the limited liability company or LLC. It is often used because it is considered simple to set up, provides limited liability protection, and is not subject to double-taxation like corporations.

What is the next critical step that many founders and over-eager entrepreneurs miss?

The next critical step that many founders and over-eager entrepreneurs miss is the step of sitting down and figuring out how you are going to work with your co-founder or founding team.

Is starting a business scary?

Starting a new business starts as exciting and can quickly turn scary when you think about all you don’t know about launching a new venture.

Is LLC the right entity?

If you are confident that the LLC is the right entity choice for you, it is crucial you and your partners (or soon to be members ), spend the necessary time and consideration in thinking about your Operating Agreement and a Buy-Sell Agreement. By considering the following 12 questions, you will be way ahead of the majority of entrepreneurs who often put the cart before the horse and end up paying 10x to clean up what a properly drafted LLC governance documents would have cost them from the beginning.

Business Name

Before your begin the registration process, you and your lawyer should discuss the potential name for your new business. Ask your lawyer if she has experience researching business names that are already in use in your state. Also, when forming your LLC you may wish to consider trademarking your name.

Registration

You should ask your lawyer about the general information required for registration, including how you should structure your fiscal year, if your state requires disclosure of all investors and what other general information your state requires for the actual registration of your LLC.

Operating Agreement

You will want to discuss the creation of an operating agreement with your attorney. The operating agreement for an LLC spells out how investments will be handled, who will mange the LLC, how business will be conducted and how ownership of the LLC will be structured.

Other Filings

In addition to filing your registration documents and drafting an operating agreement, you should ask your attorney what other forms will need to be filed in order to lawfully operate your business as an LLC. If you are hiring employees, you may need to apply for a federal tax ID.

What is the first state to register an LLC?

The first state registration is called a "domestic" registration. Registrations in additional states are called "foreign" registrations. 8 . For example, if your new LLC is forming in Iowa, you would register is as a domestic LLC in Iowa.

What does LLC stand for?

There is a misunderstanding going around that the term LLC stands for " limited liability corporation ." The "limited liability corporation" is actually incorrect; there's no such corporation type. A corporation is a separate business entity from an LLC. 4 

What is the abbreviation for a limited liability company?

The name of the limited liability company, which must contain the words “Limited Liability Company, “or the abbreviation “L.L.C.,” or “LLC.”1 

How much does it cost to file an Articles of Organization?

You will need to pay a fee for filing your Articles of Organization/Certificate of Organization. This fee varies by state, but it is usually between $50 and $200. If you have an attorney do this filing, you will pay attorney fees for this service. If the attorney prepares the Operating Agreement, that will be another cost,

Is a multiple member LLC a partnership?

A multiple-member LLC is taxed as a partnership, but an LLC should manage operations through an Operating Agreement, which functions in similar way as a partnership agreement but is just called by a different name.

Can an LLC hire an outside manager?

An LLC can select one of the members to be the manager, or it can hire an outside manager as an employee. 5 

Can you name an LLC?

Otherwise, you can name your LLC anything you want as long as another company is not using that name or a very similar name in your state.

Why is it important to meet with a small business attorney?

Meeting with a small business attorney is an important way to get your business off to a good start and minimize future risks. Here are questions to ask at your first meeting. New entrepreneurs have their hands full, making plans, developing products and services, and lining up financing.

What to do before starting a small business?

Before starting a small business, you must decide how your business will be structured. If you do not form a formal business entity, your business will either be a sole proprietorship (with one owner) or a general partnership (with more than one owner). Legally, you and your business will be the same “person,” so if your business has debts ...

What does a business lawyer do?

A business lawyer can explain how to start a business and answer your business law questions. But more importantly, a lawyer can identify the risks you face and help you minimize them. When you meet with your lawyer for the first time, it’s a good idea to have some questions in mind.

How to start a business off on the right foot?

Always ask your business attorney to assess your risks and identify ways to alleviate them. Getting business advice and legal help from a small business lawyer is a smart way to start a business off on the right foot. But don’t lose touch with your lawyer once your business is up and running. Make it a habit to seek business legal advice regularly ...

What is an LLC operating agreement?

Corporate bylaws and LLC operating agreements provide important guidelines for operating your business. These documents explain how decisions will be made, when and how shareholder meetings are held, how to handle LLC ownership changes, and how shares of stock are issued.

Can you use a name that another business is already using?

Every state has rules about the names that new business entities can use, and in general, you can’t choose a name that another business is already using. Also, it’s risky to choose a name that might infringe on another business’s registered trademark.

Do businesses have copyrights?

Businesses also may have copyrights in any original works of authorship, including such things as photographs, brochures, and websites. Copyright protection is particularly important if you are in a creative field. And if you have an invention, you may need to apply for a patent.

What to do if a lawyer gives you a list of references?

If the lawyer agrees to give you a list of references, check them out thoroughly.

Why are lawyers wary of consulting with other lawyers?

Some lawyers are wary of consulting with other lawyers for fear of losing the client’s business.

Why is it important to have an immigration lawyer?

Immigration laws are also important to comply with, especially if you have employees who are not citizens . An experienced lawyer can help put you on the right track by educating you on the laws associated with your business. This is definitely one of the very important questions to ask a lawyer when starting a business.

What to know before ordering business cards?

Before you order business cards and signs, you need to make sure the name of your business won’t bring any legal problems in the future.

What is a reputable lawyer?

A reputable lawyer will be familiar with those laws and can give you the assistance you need to eliminate mistakes.

Do business owners have a full plate?

Business owners have a full plate day in and day out, but your legal concerns will not be insurmountable if you find the right lawyer. Take your time, make a list of questions, and, most of all, be prepared for the questions the lawyer might ask you.

Do business lawyers charge an annual fee?

A good business lawyer is truly invaluable, and most will allow you to pay an annual fee so that you can contact them anytime you need them. You can ask them questions about employees, paperwork and documentation, risk-management issues, personnel issues, and even concerns about your board members.

Why is a small business attorney important?

A small business attorney is a big help on this regard because he can simplify things for all of you and prevent any misunderstanding that may arise while settling the contents of the agreement.

What is the number one candidate for entrepreneurs who are more comfortable with working alone?

The sole proprietorship is the number one candidate for entrepreneurs who are more comfortable with working alone. From the phrase itself, it is easy to derive that the owner of the business is just one person who is most likely to be the manager as well.

How much does it cost to organize an article of organization?

Organize and file the paperwork needed that is referred to as the articles of organization that may cost about $100 to $800 depending on the state.

Do entrepreneurs need to worry about personal assets?

Entrepreneurs who opt for this structure do not need to worry that their personal assets will be in peril if ever the business was not able to meet the financial obligations expected from it. Your losses are limited to your investment in the business.

Do small businesses need contracts?

The contracts you need may vary depending on its type of structure. However, there are common contracts needed by small businesses that could be drafted with the help of a business lawyer.

Is it risky to start a business?

But starting a business can be a very risky venture. The more you plan and strategize before you start your business, the more likely you will be able to succeed. Here are the 5 top questions to ask a business lawyer before starting a business. Before you start your business, make sure yourself you ask the following….

Is LLC complicated?

Forming an LLC is not as complicated as some are inclined to think. The following sums up the steps that you should do to form one.

What are the factors to consider when selecting a business entity?

Some of the factors to take into consideration include: Whether you plan to have employees; Desired tax treatment for the entity; Whether you plan to own and operate the business yourself or with one or more business partners; and.

What is the key to a successful business?

In fact, the key to most successful businesses is the existence and implementation of legally sound contracts and agreements.

How long does a business entity reservation last?

A business entity reservation is effective until the 121st day after the application is accepted. This can give you some extra time to prepare for next steps while also keeping your preferred name on hold in the interim. 3.

Is it easy to pick a business name?

However, formally selecting your name is not always so simple. Sometimes, an aspiring business owner may have a name in mind only to discover that it is already being used by another business in the area.

What are the legal ramifications of starting a business?

There are several legal ramifications of starting a business. It can lead to issues related to liability, copyright, employee rights and everything in between. So one of the first steps you should take as you work to get your business off the ground is speak with an experienced business attorney.

Why do you need to have a contract with multiple partners?

It’s best to have contracts or signed agreements in place when you’re just getting started so that all parties involved understand what is expected of them and what they are entitled to in any given situation. This can help you avoid contentious disagreements that could lead to legal battles down the road.

Do you need a lawyer for a business?

Once your business starts working with vendors, suppliers, clients, or any other third parties, you’ll need written agreements in place to ensure that all parties involved know what to expect. A lawyer can help you draft specifics or at least walk you through the creation of some templates that you can use in common situations.

Can a business attorney help you make sure your name of choice is available?

And you also need to be sure that you’re not infringing on any existing copyrights or trademarks with your name choice. So a business attorney can help you make sure your name of choice is available and walk you through the necessary paperwork.

Does a lawyer do taxes?

Your legal representation probably isn’t going to do your taxes for you or manage your books. But there are some tax ramifications of choosing different corporate entities or making some of the other decisions listed above. So it is important that you also have a good CPA in your corner, and your lawyer might be able to refer you to one so they can work in tandem on some of those important issues.

Contributions and Capital

• 1. What contributions of cash, property or services will each of the owners (who are called “members”) make to the LLC? 2. Will there be any required contributions after the initial ones (e.g., to fund working capital needs)? If so, what penalties will apply if a member fails to make a required contribution when due? 3. Under what circumstances, if...

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Distributions

Governance

Transfers of Interests; Buy/Sell

Termination/Conversion