When should new businesses hire a lawyer?

By The Law Office of Yoel Molina.
 
Do you need to engage a lawyer to assist you to get started if you have a brilliant idea for a start-up business? Possibly not. Many of the basic tasks involved in picking and creating your company entity can be completed on your own. But when your firm develops—for instance, when you start adding staff or signing more intricate contracts—you might find that you need a lawyer's help. However, keep in mind that if you are unsure of anything at any point in the procedure, hiring a lawyer can help you prevent mistakes or getting into situations that may have unforeseen (and expensive) consequences, which can save you money.
 
Selecting a Business Structure:
You must choose the type of ownership structure that is appropriate for your new company. The majority of states include information about the various business entities you can pick from—solo proprietor, LLC, corporation, and partnership—on their secretary of state (SOS) website. To further assist you in understanding your options, there are numerous online and offline resources accessible. The kind of business you have, the number of owners, and your funding will determine what kind of ownership structure best meets your needs. Although many business owners make this choice on their own, you should speak with a lawyer or an accountant first if you have any concerns about liability, tax, ownership, or other matters.
 
Availability check for names:
Another first step you will need to do is choose a name for your company. While there are some legal restrictions associated with choosing your company's name, most of the time this can be done without a lawyer's assistance. The first thing you should do is see if the name you desire is taken in the state where you intend to start and run your business. The majority of states provide a database of business names on their SOS website that includes the names of all the companies that have already registered in their jurisdiction. If you wish to reserve your business name, you should be able to find information there on how to do so as well as how to verify if the name is available.

Once you've established that the name you wish to use is available in your state, you should check to see if a registered trademark already exists in that space. You can do this by checking the Trademark Electronic Business Center of the U.S. Patent and Trademark Office online.
 
Your business entity formation:
You can create your business entity as soon as you've decided on the name and organizational structure of your new venture. If you've chosen to operate as a single proprietor or partnership, you won't need to submit any paperwork or pay any costs (although partners should enter into a partnership agreement).
 
When you've made up your mind to create an LLC or corporation, you'll need to file the necessary paperwork with the state and pay the associated filing cost. For creating an LLC or corporation, the majority of SOS offices have useful information and forms available. The names and addresses of the new business, your registered agent's name and address, and a few other details are typically all that are needed to complete these forms. How to fill out the form, pay the filing fee, and submit the paperwork to the state is typically explained in great detail on the SOS website.

If you are incorporating a corporation or an LLC, you must draft bylaws or an operating agreement in addition to registering your business entity with the SOS's office. These are internal documents that outline your organization's policies and practices, such as how to hold meetings, take decisions, or close down and wind up your business.
 
Running the company:
Once the formation duties are completed, you can concentrate your efforts on starting your business, choosing the most effective sales strategy, and developing the desired web presence. You might need to draft contracts or other sorts of agreements for the services or goods your company provides depending on what your firm does. Additionally, you'll need to secure any necessary licenses and permissions as well as adequate insurance for your company. You can do these chores without hiring a lawyer if you use the many self-help options that are accessible.

You can eventually come across more complicated circumstances or legal problems that could have detrimental effects. This might happen in connection with a potential employee lawsuit, the recruitment of investors, or the acquisition of another company. The costs you may suffer if you make a mistake will more than balance the cost of engaging an experienced lawyer to assist with more intricate cases. Most small businesses run into a scenario where they need the assistance of a qualified small business attorney at some point.
 

If you have any questions about this article or similar matters, please contact our office, the Law Office of Yoel Molina, P.A., at fd@molawoffice.com or 305-548-5020, option 1