When to Hire a Business Attorney for Formation of Companieshttps://toppinslawfirm.com/wp-content/themes/toppins/images/empty/thumbnail.jpg 150 150 Wasim Wasim https://secure.gravatar.com/avatar/9402f7ed21295a9145078a28c1b792c7?s=96&d=mm&r=g
The idea of starting a new company evokes mixed feelings in many. The thought of venturing into a totally new environment full of risks stirs fear and sends chills down the spine while the equally overwhelming thought of kick-starting a business that might be a potential turnaround in life evokes joy and optimism.
As if the concoction of feelings and the hustle of getting enough capital to fund the company are not enough, new business owners need to worry about hiring business attorneys to help them with the formation of the new company. Unfortunately though, this step of hiring a business attorney for formation of a new company is a step that most business owners omit and they end up regretting it in the future.
Business attorneys are very crucial when it comes to the formation of companies and they offer invaluable counsel which can potentially save a company from crumbling in future. The big question therefore is what is the significance of hiring a business attorney when starting a company? What is the role of a business attorney in the formation of a company? Here is a look at the role of a business attorney in the formation of a company and why companies should always hire a business attorney when starting their companies;
Role of a business attorney in formation of a new company
1. Explaining the various business organization structures available.
The structure of a business is very important. A business can either be a sole proprietorship, a partnership, LLC, a corporation or a non-profit company. The structure of any business will affect the business ownership’s exposure to tax obligations, personal liabilities and even setup fees charged by the relevant bodies.
With the help of a business attorney, the ownership can decide on the best structure that fits their business idea and the location of the business. The business attorney is tasked with explaining the various business organization forms which are available and the implications of opting for each structure. The attorney will then offer his professional advice on the structure he deems the best for the company and the ownership can then decide to follow the attorney’s advice or not.
2. Explaining important tax implications, business liabilities and various fees associated with starting a new company
In America, the tax system is very complicated and new companies suffer the most from the nature of the tax system. Without a business attorney, it is very hard for business owners to understand the tax implications, business liabilities, structure of management and even start up fees which are supposed to be paid to the relevant bodies.
This is where a business attorney comes in. An attorney has the required knowledge in tax, business liability and other matters such as management of business and will advise the business owners on what to do when starting the company.
3. Drafting and filing all registration documents required for the new company
There are very many documents which need to be drafted and filed by new companies. These include the registration of the business name, acquisition of a business license, business permits and other important documents required for the business to be recognized officially.
These are all things which will be very tedious without a business attorney. With a good attorney by your side though, drafting good government documents and filing them will be very easy.
4. Drafting all the necessary documents for partnership agreements
If your company agrees to go into a partnership with another existing company or another new company, you will need to draft partnership agreement forms to document the partnership. Documents such as the article of incorporation, bylaws, operating agreements and articles of organization can only be properly drafted by a good business attorney.
5. Advice on the need of Employer Identification Numbers or lack thereof.
Business attorneys are capable of advising new companies on the need of employer identification numbers. This is a number assigned to business entities which are operating in the United States for the purpose of identification.
6. Drafting the tax forms required to get the new company up and running
Besides advising on the best business structure to employ for the new company, a business attorney will help the new company to draft tax forms which are required to get the new company up and running. Without an attorney, it will be very difficult for new companies to draft these forms and chances are high these companies will get numerous visits by the IRS in the future.
So, don’t start a new company without a good quality business attorney. Protect your company from future legal suits and start on the right note. If you are in Houston and are looking for the best business attorneys to help you with handling corporate documents give us a call here at Toppins Law Firm and we will gladly be of service.
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