Although you may have an excellent idea for a new business venture, it’s not always necessary to hire a lawyer to get started. You make most decisions on your own to start a company, such as choosing a name and establishing a business entity. Once you get to the later stages of your business, you may need the help of a lawyer.
It’s essential to consider the good and the bad before making any decisions. Having the help of a lawyer can help you avoid potential problems and avoid costly mistakes.
Picking Your Business Structure
You must decide on the type of ownership structure that will work best for your business. Most states have websites that provide information about the various types of business entities that you can choose from. Multiple resources can help you understand the different options that you can have.
The type of ownership structure you choose will also depend on the type of business that you’re planning on operating. In addition to the number of owners, you also need to consider the financing and other factors that will affect the operation of your company. Before making any decisions, you must talk to an accountant or lawyer about specific issues.
Name Availability
One of the first steps you need to take when establishing a company is choosing a name for your business. Although specific legal requirements apply to this process, it can be done without the help of a lawyer.
In most states, a business name database can be found on their SOS website, which lists all the companies registered in the state. You can check for names that are available and reserve one by visiting the website. You need to ensure that the title you’re planning to use does not have a registered trademark. You can check for this by visiting the US Patent and Trademark Office’s website.
Making Your Business Entity
After you have settled on the name and the business structure you’re planning on using, you’re ready to form a company. If you’re planning on using a partnership or sole proprietorship, you don’t need to fill out any paperwork or pay any fees. You’ll need to file documents with the state to establish a corporation or LLC. If you’re planning on using an SOS office as your filing agent, they can help you create a company or an LLC. These documents usually only require a few details, such as the company’s name and its registered agent’s address. The instructions on the SOS website can help you complete the form, pay the fee, and file the documents with the state.
You also need to create an operating agreement or bylaws for either a corporation or an LLC. These documents are used to set the rules and procedures for the company, such as how to hold meetings and take action.
Before you start a company, you’ll also need to establish a bank account for your new business. This will allow you to keep all the money you’re planning on using for the company separate from your finances. You’ll need an EIN from the IRS to open a bank account. After you have the necessary documents, you can go to a local bank to open a business account. If you’re planning on not having employees and you’re planning on operating a single-member LLC or sole proprietorship, you don’t need to have an EIN. This is considered to be good practice for business.
Conclusion
You may sometimes run into legal or complex issues that could affect your business. Hiring an experienced attorney can be more than offset by the expenses you’ll incur if you make a mistake. Most small companies eventually need the help of an attorney due to specific legal issues.