When Do Businesses Need to Hire a Lawyer?
Entrepreneurs often wonder if they need to retain a lawyer when starting a business. While it is common for business owners to try to juggle many responsibilities in the beginning stages of their business, sometimes they make the mistake of trying to handle everything on their own. Apart from diverting their attention from their primary business goals, this approach can also hinder their progress. Even more problematic, dealing with legal issues related to a business can be particularly challenging, which is why most new business owners prefer not to handle it themselves.
Have to Decide on a Business Structure
When starting a business, one of the first things a business owner must consider is their business structure.
Generally, if the business has a single owner, it can operate as a sole proprietorship, a single-member limited liability company (“LLC”), or a corporation. However, if there is more than one business partner, they will have several options to choose from, such as partnership, LLC, or corporation. As the number of owners increases, decision-making becomes more challenging, and an LLC or corporation may be a better option than a partnership. However, deciding on a business structure can have significant implications for a business and should not be made without careful research or discussions with an experienced business attorney.
Creating a Business Plan
Another critical step in starting a business is organizing all the business ideas in a business plan. In most cases, banks and investors review this plan before providing funds to a business owner. That is why having a detailed and comprehensive analysis of the business can help individuals secure the necessary funds for their company.
Working with an attorney on a business plan can not only help ensure that the plan identifies critical business components that investors need to review, but these legal professionals can also identify legal issues or other problems and ensure they are flagged and fixed quickly.
Deciding on a Name
Choosing the right name for your business is important in establishing your brand identity. However, it is crucial to conduct a thorough search before finalizing a name to avoid any legal issues in the future. For example, a detailed search on the internet and with the Secretary of State can help ensure that no one else is already using the name you have in mind. This can help you avoid infringing on someone else’s trademark. If you are unsure how to perform this search or want to confirm that the name you chose is a good fit for your business, consider consulting with an experienced business attorney who can guide you through the process.
Asset Protection
Another significant advantage of having experienced legal representation on your side as you start your business is that it safeguards your personal assets from being targeted due to your business-related activities. For instance, hiring an experienced business attorney can help you establish your business in a way that prevents any lawsuits or claims against it from affecting your personal bank account, home, or other assets.
To Learn More About Business Formation, Contact Gould, Hahn, & Reinhardt Today
The legal professionals at Gould, Hahn, & Reinhardt focus on providing reliable advice to business owners and licensed professionals to ensure that the structures they operate and the decisions they make are accurate and secure. Whether you want to form an LLC or corporation or are planning on leasing, selling, or buying a company, our goal is to provide the guidance necessary to help you reach your destination.