Benefits Of Hiring A Local Business Formation Lawyer
There are many reasons a local business formation attorney can be beneficial to your small business. First, they have a great understanding of the local market and the business environment your organization must operate in. They can also provide you with valuable information about federal, state, and local regulations specific to your industry, and help you properly navigate the licensing and permit process to ensure you’re in compliance. They’ll be able to guide you through the unique issues your business may face with the boundaries of their jurisdiction, and find you the local resources that can assist you with issues that may arise.
Your business formation attorney will be able to sit down with you and discuss what your options are for forming an entity to limit personal liability for your organization’s debts. They will advise you on your choices based on your industry and jurisdiction, and help you to make sure you understand the nature of each type of entity available to you. For example, an old fashioned C corporation may still be right for your company if it’s based in Delaware and you sell stock to the public, but if you are a small importer with a handful of local customers, or a tech firm just starting out in your garage, your needs may be better served by an LLC taxed as an S corporation or a limited liability general partnership . Your business formation attorney will assist you in making an entity choice that is most advantageous to your particular situation, and will know the local laws you need to consider.
In addition to helping you form your business entity, your local business formation lawyer will be able to assist you with license applications and filings in your area. This might include the acquisition of a general business license for your entity, or industry-specific licenses like those needed for a liquor store, securities brokerage firm, daycare center, or a lawyer for your law firm. Your local business formation attorney will know the procedures for business license issuance in your city, and will help you along the way.
Finally, you will be provided with invaluable counsel and representation that only an attorney can provide. With a local business formation attorney, you’ll have the peace of mind of knowing that someone knowledgeable has your best interests at heart. Your local business formation attorney will get to know your business and its goals, and be there for you every step of the way.
Duty of And Services Provided By Business Formation Attorneys
Business formation lawyers offer a variety of services to help entrepreneurs and small business owners form and operate their companies. One of the primary services is business entity selection. A qualified attorney will work with clients to determine the most suitable business structure; a sole proprietorship, partnership, limited liability company (LLC) or corporation. The choice will depend on the client’s goals, the nature of the business, taxation considerations, and other factors. The attorney will then prepare and file the necessary formation documents. From there, lawyers for business formation will prepare additional documents such as the operating agreement for an LLC or articles of incorporation for a corporation. Partnerships may require a partnership agreement. Additionally, they can create corporate bylaws, employment agreements, or any other legal documents that may be needed.
A business formation lawyer is usually highly familiar with not only state business formation laws, but also federal regulations. For this reason, it’s common for them to provide support for trademark registration and related intellectual property issues. Whether the business is manufacturing products, selling them online or holding them in inventory, there’s likely some kind of IP protection that’s warranted. A business formation attorney can register the trademarks, copyrights or patents, as well as provide ongoing counsel regarding infringement concerns.
A solid business formation lawyer will also provide compliance consulting for clients. This can include guidance on annual reports, employer responsibility obligations, corporate governance and more. Compliance varies some from state to state, but there are always basic requirements including maintaining accurate financial records, regular board meeting minutes, accounting standards and filing of taxes. A good attorney will help ensure you avoid any mistakes that can cause serious problems down the road.
Finally, an experienced business formation attorney will serve as legal counsel for clients during the process of deciding whether or not to expand. Specifically, they can provide advice on mergers and acquisitions, compliance and investor relations.
How To Choose The Perfect Buisness Formation Lawyer
Finding the Best Business Formation Lawyer Near You can be a daunting task, however knowing some important considerations can go a long way in helping you choose the right business formation lawyer near you. In this section we will discuss some factors that you may wish to consider when selecting a business formation lawyer near you.
Experience
Most importantly, you want an attorney that knows what they are talking about. Businesses come in all shapes and sizes and you need to be sure that your attorney has experience forming businesses of those types. Running a small pizza shop is not the same as managing a multi-regional medical clinic or a Fortune 500 corporation. Make sure your attorney is experienced in the field in which your business will operate.
Online Reviews
You may want to check out your prospective attorney’s online reviews. This will help you get a clearer picture of how the majority of their customers feel and whether or not you would like to use their services.
Legal Fees
You need to be sure what the costs of the services will be. It is important to make sure you understand the fee structure so that you are not blindsided by billing at the conclusion of the service.
Communication Style
You will find that employees have various styles, some suit you and some do not. It is important to find someone who communicates similarly to you. If you prefer email, avoid a lawyer that does much of his communication by telephone. If you prefer telephone, avoid an attorney whose paperless office requires all communication to be in writing. Find a lawyer that will mesh appropriately with you and your expectations.
Questions To Ask When Interviewing A Buisness Formation Lawyer
When you sit down with the prospective business formation lawyers on your short list, you will want to ask questions that will give you insight into their capabilities and expertise. Here are the questions to consider:
1. Have you worked with many businesses like mine before?
Any business formation lawyer in San Diego or anywhere else you’re looking will have formed corporations, LLCs or partnerships, but try to find out if they have experience in your industry, your locations or with the funding you are pursuing.
2. How much do you charge for your services?
Expect to wince at the answer; lawyers tend to be expensive because the profession has high overhead. You will want to pay a lot less than the cost of the lawyer’s time in dollars, but you also need trust their expertise. Setting up an LLC or an S-Corp is not a huge job and shouldn’t cost you a whole lot of money – but do you want to pay more money up front to have a pro do it right? Or do you want to get your hands dirty and hire a less expensive lawyer to be sure you’ve dotted your i’s and criss-crossed your t’s on the application forms?
3. How do you charge – hourly, a flat fee , a retainer?
Lawyers are not known and especially beloved for their fixed-fee services. But if they do get paid by the hour, how much will they charge you? How quickly do they turn around work? Do they work weekends and evenings, or do you need to make special arrangements for urgent projects?
4. Have you ever been sued? Do you have any disciplinary actions against you?
If you didn’t already find out about lawsuits and disciplinary actions from the first question, this is a good follow-up for a hot button. If he or she has a history of legal disputes, would you trust them? Do you want someone with a record of discipline fighting for you?
5. How do you communicate with clients?
Do you prefer to talk on the phone or by letter? With today’s technology, being able to move information around quickly is extremely important, so will you be able to text them?
These are just a few questions to start a dialogue with a prospective business formation lawyers in San Diego, or wherever you live. It’s a relationship, and you want to make sure you and your lawyer are compatible and work well together – because you may be working with each other for a long time.
Fees for Engaging A Business Formation Attorney
When it comes to business formation legal services, attorneys charge in a number of ways. Some will demand retainers before beginning the formation process. Others will charge fees based on an hourly basis. In some situations, the lawyer will quote fees based on a specific type of service provided. In other instances, like providing a consultation, the lawyer will charge on a flat rate basis.
These are only a few ways lawyers will charge for their services. In terms of the formation process, they are a handful of additional ways that lawyers charge. It’s important to clarify the fee structure with your potential attorney before hiring them.
For example, if you plan to create a C Corporation, LLC, or similar business entity, ensure the lawyer is upfront about his or her fees. You also want to be clear on how the lawyer will charge for other services, e.g. trademark filings, accounting services, and so on. It’s rare for one legal professional to handle all the issues pertinent to the formation of a business.
When budgeting for these services, factor in how much you can afford to pay for a retainer or a flat rate, or whether your business formation requires additional services like trademark filings, property appraisals, etc. If the corporate formation fees run higher than your budget allows, doesn’t mean you won’t find the right business formation lawyer to meet your needs.
It might mean you simply need to lower the level of service or the number of companies you’re interested in forming initially.
How To Get The Most Out Of Your First Consultation
When you’ve found a business formation lawyer near you, you will want to make sure that you are prepared for your first meeting in order to get the most out of it. First, you should have all of your documents with you, including any paperwork that you may have prepared on your own about the structure of your new business, the people you want to include, as well as other relevant information. If you have been operating your business for some time, or are already familiar with how it all works, you may want to map out your current operations and future goals.
Bring your questions and make sure to ask them during the meeting. The reasons for setting up a company entity may be different for each business. A business formation lawyer can go into detail about how long the process takes, what the costs are , and whether or not it is worth it in the long run. Having everything planned out ahead of time will ensure that your business formation lawyer has all of the information needed to answer your questions. Make sure to take notes or have someone with you to write down everything that was discussed. If your business formation lawyer provides a summary of what was discussed, use that as the basis for your further questions.
The initial meeting is just as important for you as it is the business formation lawyer. The conversation will allow both of you to determine if that particular lawyer is the right one for you. Never hire anyone that makes you feel uncomfortable or doesn’t provide an explanation that you find satisfactory. Although there’s no such thing as a stupid question, never feel embarrassed or ashamed of what you do not know.