“Can’t I just do it myself?” wonder many entrepreneurs starting their own businesses. “Do I really need a lawyer?” Often, these new businesspeople find themselves in over their head after completing a few initial steps towards incorporating or forming a partnership. Consider consulting an attorney if you:
- Have no legal or business experience and have never formed a business before
- Are not sure which type of business to use: corporation? Limited liability company? Partnership?
- Plan to have employees or work with contractors
- Are buying or selling a business
- Are expecting or dealing with a lawsuit
A lawyer can help you draft agreements, such as an LLC operating agreement or a confidentiality agreement. Agreements and contracts are not “one size fits all” – every business has different needs that may need to be addressed in its formation documents. For example, if members in an LLC contribute different amount of money towards its formation, you may want them to hold different ownership interests in the company.
A lawyer can advise you on the best type of business based on your needs. One difference among different types of businesses is how liability is allocated. For example, partners take on liability personally for the partnership, whereas corporations’ shareholders and directors generally are protected from liability. Another difference is structure and management: corporations have directors, officers, and shareholders, while partnerships and LLCs just have partners or members and managers.
When buying or selling a business, anticipating adding employees, or facing a lawsuit, a lawyer can be of tremendous assistance. Buying or selling requires due diligence and often-complicated contracts between the new and old owners that a lawyer can tackle. Adding employees may generate tax liability, new insurance requirements, and more – lawyers make the transition painless. If you are facing or expecting a lawsuit against yourself or your business, you probably have a host of concerns, and to delegate responding to the lawsuit to an experienced professional is a relief for most.
Finally, state law on business formation varies widely. If you are not familiar with your state’s laws or think you might want to incorporate in another state, consult an attorney to advise you about the process. This can be as simple as a short consultation or can develop into a long-term relationship that helps your business grow.
Forming a new business? Norris Law Group’s attorneys advise clients on the intricacies of Wyoming and Utah business and corporate formation law. Contact Norris Law Group today by emailing Norris Law Group attorneys, calling (801) 932-1238, or visiting the Utah or Wyoming offices.