If you are a businessman or woman and are looking to incorporate a new business, you are probably weighing the pros and cons of hiring a lawyer or going it alone. While hiring a lawyer may include some additional fees there are a lot of important reasons why any businessperson worth their salt should absolutely consult with a legal expert when incorporating a new business.
If you need business help from a lawyer, consider these highly important reasons why you should absolutely find one when you are incorporating a new business!
Lawyers help you make the right selection
When you are incorporating a business, there are a lot of different kinds of entities that you can select from. Some of the most popular options include LLCs, Corporations, Limited Partnerships, and Limited Liability Partnerships. Depending on your business and the goals of your business, the best available option may differ.
Having a lawyer who is educated on the nuances of these different entities is a fantastic tool that you can benefit from. The most important thing to focus on in this decision is what is the best fit and what is the most cost-effective method.
Without a doubt, your lawyer will know the answer to those questions.
Lawyers help make sure that formalities are maintained
Many business owners are simply not aware that proper incorporation does not only include filing the necessary articles of incorporation with the local Secretary of State. If your corporation or LLC does not follow all of the required corporate formalities, your articles of incorporation will not hold up. Some of the most important formalities to consider include maintaining bylaws or operating agreements, filing the proper DBA forms, issuing stock certificates, maintaining a corporate book, and much more.
Though you may not know that list of formalities by heart, a lawyer will surely know precisely what you have to do to make sure that you are in the clear.
Advise you on tax issues
This is obviously a big one for any business. You want to make sure that your business is in good standing tax-wise at all times and a lawyer is a major way to help ensure that everything is in the clear. For example, a lawyer may tell you that making an election such as an S-Corp election can significantly reduce your tax liability. Your attorney will also be able to help you make sure that you are taking full advantage of corporate tax law. They will also be able to file the necessary paperwork on your behalf.
As you can see, there are many incredible benefits to having a great lawyer on your side while you are incorporating a business. Their skills and knowledge will not only help you as you incorporate but will also help you in the many years to come as your business continues to flourish and grow. Hopefully, this quick breakdown has helped you understand why.