what legal questions do i need to ask a lawyer for start up businesses

Here are seven questions you should ask to find a startup lawyer who can advise your business: 1. How much experience do you have with this specific area of law? The main question you should ask your lawyer, of course, is how much experience they have in the specific area or areas of law that you’ll be needing help with.

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What questions to ask a business lawyer before starting a business?

It’s tempting to simply take your payment out of the company’s funds and call it good. It’s also financially dangerous to do so. A business should be run as a business, not a personal checking account. To avoid legal snags and tax questions you should always pay yourself with a check written from your business’s account. 8.

How can a small business attorney help you start your business?

Jun 24, 2017 · As an entrepreneur, one of the first questions you should ask yourself, your accountant, and your lawyer is what type of company structure will best suit the business you plan to conduct. The answer will depend on the size of the company, your expected cash flows and revenues, and the level of liability you are willing to assume, or can afford.

What questions should I Ask my Lawyer when meeting with him?

Jun 19, 2018 · Speak to your legal representative to discuss what types of coverage you might need or at least benefit from, including coverage for workplace injuries, data breaches, or non-injury claims made by employees or customers. Creating Vendor Contracts

Do lawyers like to do the questioning?

Apr 09, 2015 · Ask follow-up questions, such as where and when any similar cases went to trial and their results, to ensure the attorney really knows the subject matter. Two: Do you practice in the courthouse where my case is (or will be)?

What questions should I ask a startup lawyer?

What are good questions to ask when starting a business?

What are common roles a lawyer can play while forming your small business?

In what ways can a lawyer assist an entrepreneur when starting a business?

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

What are the 4 basic business questions?

What's the difference between attorney and lawyer?

What does a lawyer do in a business?

Why should the owner of a small business have a lawyer on the team?

What kinds of decisions need to be made when starting a new business?

What are lawyers not allowed to do?

How do start my own business?

How Should I Structure My Business?

This seems like a basic question, but it’s actually one of the most important things you can ask when you sit down with a business attorney.

How Do I Protect My Personal Assets?

Regardless of the specific structure you choose for your business, you want to structure your business to protect your non-business assets.

How Do I Minimize My Risk?

Regardless of the type of business you own, there is a huge range of state and federal regulations that apply to you.

What Should Be in My Bylaws?

Part of this process of minimizing risk and protecting your assets involves writing your bylaws properly.

How Can I Protect My Intellectual Property?

All businesses, yours included, need certain trademarks to identify themselves from other businesses.

What Contracts Does My Business Need?

Contracts are one of the most basic things you deal with on a day-to-day basis in your business. But they’re central to successfully running a business, as they spell out your responsibilities and obligations in any agreement.

More Questions to Ask an Attorney

Now that you know what questions to ask an attorney, you need to find an attorney to answer them for you.

Questions to Ask an Attorney Before You Open Your Doors for Business

Did you know that nearly half of all small businesses fail within the first five years? While most of these failures are related to financial issues, many can be avoided by seeking out expert advice. For example, there are certain legal questions to ask an attorney before you start.

1. How Should I Structure My Business?

As a small business owner, you need to learn to ask legal questions that will heavily impact your finances and business model. For example, there are many ways to form your business:

2. What Licenses or Certifications Do I Need?

Before you open up shop, you need to make sure your business is operating 100 percent within the confines of the law. A small business attorney will make sure you have everything you need to prevent any lawsuits or fines from the city.

3. What Type of Insurance Should I Get?

When you start a small business, you need to make sure you and your assets are protected. A small business attorney can help guide you through the different types of insurance policies you will need and how much coverage you should get.

4. Do I Need a Contract for Working With Business Partners or Independent Contractors?

There are other questions to ask an attorney if you are planning on working with partners, independent contractors, or businesses. You will want a lawyer for a business startup to help you hack out the details of legally binding contracts .

5. What Do I Need to Know If I Hire Employees?

Finally, you will want a small business attorney if you are planning on hiring employees. They will help you create an employee handbook or a list of policies that dictate employee expectations, fair treatment, conduct, consequences, and more.

Do You Have Any More Questions to Ask an Attorney?

Starting a small business is no small feat. However, keeping it alive and thriving is even harder. For your best chances of success, we recommend coming up with a list of questions to ask an attorney to make sure your business is free and clear of any potential issues.

How to create a business name?

The name itself suggests that the owners have limited liability concerning the business’ financial obligations. The owner could be one or more, but unlike in sole proprietorship and partnership, their interest is protected. 1 Decide on an available name for your business that is according to the rules of your state. 2 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. 3 Make sure that the rights and obligations of each member of the LCC are clearly stated in the operating agreement. 4 Some states require publishing a notice of intent to form a business structure called LLC. 5 Get the necessary permits and licenses required for the formation of your business.

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.

Why is it important to keep proprietary information?

Keeping the proprietary information within the bounds of your business is important to make sure that business’ interest is protected. This applies not only to the employees but to all people who have significant involvement with the business like the individual contractors.

Why is information technology important?

The advent of information technology makes it easier for us to access information that we need. The internet is teeming with drafts of different contracts for small businesses. Even the processes that you need to follow in trade name and trademark registration is just as click away.

Is it fun to start your own business?

Starting your own business can be fun and exciting. By turning your passion into your occupation you never have to “work” another day in your life! However, it can also be a scary time. You have to balance the risks with the reward and many new business owners don’t really understand the legal ramifications of launching their own start-up.

Do LLCs pay taxes?

Like corporations, they offer legal liability protection for the individual owners but, unlike corporations, are treated similar to sole proprietorships when tax time comes around (LLCs never pay taxes—the owners do).

What Kind of Company Should I Set Up?

As an entrepreneur, one of the first questions you should ask yourself, your accountant, and your lawyer is what type of company structure will best suit the business you plan to conduct. The answer will depend on the size of the company, your expected cash flows and revenues, and the level of liability you are willing to assume, or can afford.

Is My Business Legal Right Now?

Wherever you set up your business, and regardless of type, there is an enormous patchwork of local, municipal, state, and federal laws that you must comply with to operate legally. You may need a to have a license, or pay a fee to operate your business in a given location.

What is my Level of Liability?

Virtually any business is going to incur some level of liability; you have to be prepared for the chance, even remote, that something can happen to a customer or employee where you are legally liable.

Final Thoughts – Stay on the High Road

You will likely invest your heart and soul into your company to make it successful; don’t undermine all of that hard work by failing to ask the right legal questions from the start, and leaving yourself liable to a variety of different risks.

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.

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.

What is a corporate shield?

Only by establishing a corporate entity and following the necessary corporate laws and regulations do small business owners enjoy what’s commonly known as a “corporate shield” that protects their personal assets and ensures only their business assets are at play.”.

What happens if a business has an outside investor?

If your business has any outside investors, it could impact the type of corporate entity you’re able to establish for your business. Specifically, you need to be sure that the structure provides a corporate shield for your investors as well as yourself.

Who is Ben De Leon?

Ben De Leon is the President of De Leon Washburn & Ward, P.C., where he has served as general counsel to some of the fastest growing companies in Texas. As an experienced business lawyer, he recently spoke with Small Business Trends about some of the most important legal issues that new entrepreneurs should discuss when getting started.

What is the importance of having a lawyer?

Getting a lawyer with the right legal background is essential, but it is also important to know whether your attorney has experience with the judges who will likely preside over your case. If yours is a criminal matter, it is important to know if your lawyer knows the local prosecutors. This courtroom experience can greatly enhance your lawyer’s ability to evaluate the likely outcomes in your case and give you advice that you can rely on.

How can a lawyer save you money?

Your lawyer can often save you money by delegating routine tasks to firm employees who charge a lower hourly rate. However, your lawyer should be involved in all key aspects and decisions of your case, or should explain to you why a colleague can handle some important part of the matter just as well.

How to feel comfortable with an attorney?

You should feel comfortable from the beginning of your attorney-client relationship that you will be able to have regular communications with your counsel. Make sure that you exchange contact information and agree on the ways that you will stay in touch.

Do attorneys have conflicts of interest?

Attorneys in every state have an ethical obligation to advise you of any conflict of interest. Still, you should ask the question. If the lawyer’s representation of prior or existing clients would limit the attorney’s ability to represent you, there is likely a conflict. For example, if you want to sue a hospital that the potential lawyer regularly ...

What is the process of a civil case?

In civil cases, your lawyer might propose mediation , a settlement negotiation process involving a neutral third-party. Other times, arbitration might be an option. Arbitration— using a private service to adjudicate a dispute—is a less formal, less costly, and faster way of getting a decision in some civil matters.

What is contingency fee?

In cases where you are suing for monetary damages, the lawyer may represent you for a “contingency fee.”. This means the attorney gets paid a portion (typically one-third) of the amount you receive after a successful trial or settlement. Make sure you discuss expenses as well as attorney fees.

What to do after LLC formation?

Having an accountant or tax attorney advise you during and after the LLC formation process will allow you to best take advantage of this benefit. Among other things, your tax adviser can inform you how to get your company's tax identification number and use it to open up a bank account.

How to manage an LLC?

Management of the LLC can take many different forms, particularly if there are multiple members are investors. Generally, management of an LLC will fall into one of the following categories: 1 You are the sole member, with no investor, and you fully manage the company. 2 The LLC has multiple members (possibly including an investor), but all the members agree that one person manages the company. 3 The LLC has multiple members (possibly including an investor), all the members agree that one person manages the company, but that person needs their consent before taking certain actions that are outside the ordinary course of business (for example, borrowing money, selling the company, declaring bankruptcy, and the like). 4 The LLC has multiple members (possibly including an investor), and all the members agree to manage the company together, perhaps by forming a board of managers (which is similar to the board of directors of a corporation).

Why do companies use fictitious names?

Fictitious names can be very useful if you want to vary your business' name by geographic location, or assign different names to separate divisions within the company. This allows you to avoid having to formally create new subsidiaries.

Can an LLC have multiple members?

The LLC has multiple members (possibly including an investor), all the members agree that one person manages the company, but that person needs their consent before taking certain actions that are outside the ordinary course of business (for example, borrowing money, selling the company, declaring bankruptcy, and the like).

What are the advantages of an LLC?

One of the attractive characteristics of an LLC is the potential pass-through tax treatment. Having an accountant or tax attorney advise you during and after the LLC formation process will allow you to best take advantage of this benefit.

What can a tax adviser do?

Your tax adviser can also guide you on how to make and record periodic cash distributions to members, if applicable.