These days more and more people choose the option of starting a business of their own. The type of business entity usually depends on the specifics of the given business. There may be one individual to whom it all belongs or there may be a number of people who have gathered together over one idea.
There are different laws governing different types of business entities. Hence, it is common practice to hire an attorney to help you with your start-up. Following are several things that a lawyer will be able to help you with:
Choosing business entity type
Your legal responsibilities and liability may vary depending on what type of business entity you choose. You may need the help of an experienced lawyer, as in some cases business owners are liable for the wrongdoings of their employees and/or partners. Choosing the right form of a business entity will help you avoid possible headaches.
Understanding business entity details
There are 5 main business entity forms; however, each of them has got its peculiarities and subforms. Hence, it is advisable that you consult a lawyer before choosing certain options. Besides, in some cases, choosing a specific business entity type means that you should follow some strict state laws governing that business type.
Understanding Multi-state business
Different states may have different rules and regulations for start-ups. If you are not careful enough to note the differences, you may lose the protection you have in one state when you are in another one.
Preparing and signing contracts
Starting a business also means preparing and signing tons of paperwork. You will have to make agreements with your partners, customers, employees, investors and the rest. Hence, it is crucial that your contracts be formulated correctly. A lawyer will help you prepare the paperwork easily so that it conforms to both federal and state laws.
Having your business registered or licensed
Another important step to take when starting a business is registering and licensing your business. Some business entities are required to be registered with the state, others just need to get licenses or permits to operate.
These are the main 5 reasons why you need to hire an attorney when starting a business. Different business types provide different protections and pose different risks; hence it is crucial that you contact an attorney who knows the ins and outs of the matter and who is able to help you out in any critical situation.
If you are planning to start a business in the state of California, you may contact the Margarian Law Firm for legal help and further consultations. The Margarian Law Firm is a California based full-service firm with an experienced personnel and aggressive customer protection tactics. Call us today at (818)-553-1000 for more information.