what to ask your lawyer before incorporating a business

Questions to Ask an Attorney Before Starting a Business

• Structuring Your Business. There are several different business structures that you can choose when you’re forming your...
• Protecting Your Personal Assets. No matter what specific structure turns out to be the best choice for your business,...
• Choosing a Name. Another part of getting your business officially up and...

Full Answer

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

With this in mind, Intuit’s Director of Legal Affairs, Deborah Sweeney compiled this list of the top ten most important questions to consider before beginning the incorporation process. 1. What is my corporate or business name? Make sure your name is legally available . A corporate name is not the same as a

What questions should I ask before incorporating my business?

Apr 21, 2021 · Incorporating establishes a business that is legally separate from its owners. Corporations can do many things that people can do, including acquiring property, signing contracts, having bank accounts, and filing lawsuits. But if your business is small, you may wonder whether a corporation is necessary.

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

You can ask a lawyer or visit our Incorporation help center. This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a …

Do I need a lawyer to incorporate my business?

Work with your lawyer on formalizing post-incorporation documentation, such as the action by sole incorporator, bylaws, unanimous board consent in lieu of first meeting, stock purchases (this can be tricky - consult with your attorney), and other needed agreements. Request an EIN (tax number) from the IRS.

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.

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 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 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.”.

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.

Why is incorporation important?

Incorporation can also provide credibility for your business, making it appear like a larger organization. Whether you plan to sell or transfer the business in the future - Being incorporated provides more options when selling or transferring the business.

Who is responsible for the decisions of a corporation?

Directors are the primary decisions makers of the corporation. They're typically the ones that sign off on important documents such as contracts and cheques. Directors can also be personally liable for certain acts or omissions of the corporation. Learn more about directors.

What is holding corporation?

A holding corporation is a legal entity that does not carry on active business operations, and therefore does not need to worry about their brand. In most cases they simply hold shares of another corporation (sometimes used for tax and asset protection purposes) or other assets.

What does "shares" mean in business?

Shares represent ownership of a business. Shares can be issued by the corporation, transferred by shareholders, and used as security for the owner's debts, among other things. There are many different types of shares that can and should be issued in different circumstances.

What are the roles of an officer?

Officers typically include a President, Secretary and Treasurer, but can also include positions such as CEO, Vice President, etc. Like directors, officers can be liable for certain acts and omissions of the corporation. It's important that the right persons be appointed to fill the various roles. Learn more about officers.

Is incorporation a good choice?

Whether the business brand is important to protect - Incorporation can provide some protection for your business name. If name protection is important to your business, incorporating may be the right choice. Incorporation can also provide credibility for your business, making it appear like a larger organization.

What is the purpose of understanding the right entity for a small business?

Determining and understanding the right entity for your small business, enables you to establish long-term accounting goals.

Do you have to be aware of the laws of each state you incorporate in?

Since each state makes its own laws, you’ll want to be aware of the laws and tax implications both in the state you incorporate in, and the states in which you’re doing business.

Why do you need to incorporate a business?

The most common reason to incorporate a business is to limit your personal liability for business obligations. This can be a good idea if you have lots of outside contracts. Also, because a corporation's ownership is contained in shares that are easy to transfer from one owner to another, a corporation is a good choice if you're planning ...

Who owns the stock in a corporation?

Names of Business Owners. The owners of a corporation are known as shareholders, and they own shares of stock in the business. In your articles of incorporation, you'll typically need to specify the number of shares of stock your corporation is authorized to issue.

What are the two types of decision makers?

There are two types of decision-makers you might have to identify: incorporators and directors. In all states, the articles of incorporation must list the names of one or more incorporators. An incorporator is a person responsible for preparing, signing, and filing the articles of incorporation.

What is the role of the board of directors in a corporation?

The board of directors is responsible for setting corporate goals and policies and naming officers to conduct the corporation's day-to-day business. In a small business, the board of directors is usually made of up the business's owners, ...

Can a corporation be a registered agent?

In most states, your business location can serve as the registered office, and a corporation or anyone aged 18 or over can be the registered agent. However, if you don't have an office in the state where you incorporate or prefer to have someone else act as an agent for you, you can hire a professional registered agent.

Can a business name be different from a business name?

Rules about business names vary from state to state, but most include these general guidelines: Your business name must be different than the name of any other business entity registered to do business in your state. Most states have an online search tool that allows you to check for similar business names.

What is an incorporated business?

An incorporated business has its own property, signs its own contracts and pays its own taxes. A corporation is run by its directors and officers. Directors are elected by the owners (the shareholders) of the corporation and manage the big picture corporate matters like which market or business strategy the corporation should pursue.

What happens if you slip on a wet floor?

Personal injury lawsuits: A customer suffers a serious head injury when they slip on a wet floor. A court awards him $500,000 more than your business has. Without a corporation, the customer can get a judgment against your other assets—your house, car, boat, etc.

Structuring Your Business

See more on smallbiztrends.com

Protecting Your Personal Assets

Choosing A Name

Protecting Investors

Establishing Ownership Responsibilities

Creating Internal Bylaws

Adhering to Compliance Practices

Making Sure You’Re Covered with Insurance

Creating Vendor Contracts

Navigating Tax Issues