Entity Formation and Structuring
The manner in which your business is formed and structured will influence how it operates, the liabilities of the owners, taxation policies, and many other important details.
For example, the liabilities of a sole proprietor are completely different from those of a shareholder in a limited company or as partner in a partnership. The same goes for taxation and many other factors.
Along with financial and managerial requirements are legal considerations. Instead of leaving yourself open to risk, having a proper financial and legal structure from the onset, will make it easier to completely avoid legal and financial consequences.
This is the duty of an entity formation lawyer, whose knowledge and expertise covers the way businesses are formed and structured.
How an Attorney Can Help With Business Formation and Structuring
When you are setting up a business, having an attorney from the outset will save you a lot of money, time, and effort.
Waiting until you face a legal problem can have an extremely negative effect, not just financially – because of expenses on lawyer fees, court costs, and possibly a settlement – but also on the business’ reputation and PR.
When faced with an issue, you won’t have the time to vet firms. The best thing is to have an entity formation attorney even before making the first step when forming a corporation. The attorney will bring the following to the table:
- Explain the legal issues surrounding your business
Unless you have prior legal knowledge, you may find it impossible to keep track of the ins and outs of every law that affects your business. An entity formation lawyer specializes in mastering those exact concepts.
They include business formation laws, consumer protection laws, contract laws, employment laws, environmental laws, intellectual property laws, zoning laws, and license and permit laws.
- Help structure the business
The attorney will describe to you the various forms of business available and help you choose one that suits your intentions the best. The options include sole proprietorship, partnership, and limited liability company. An entity formation lawyer will consider all the factors of each, as well as your unique position, and advise you accordingly.
- Draft the necessary documents
Entity formation and structuring requires the preparation of several legal contracts. Once you have decided on the type of business to set up, the lawyer will be tasked with preparing the relevant legal documents from partnership agreements, articles of incorporation, articles of organization, operating agreements, and business bylaws.
Besides that, they will also handle the necessary contracts and agreements involving suppliers, lenders, contractors, clients and other third parties. All these documents are necessary to get the business up and running.
- Business registration
Alongside the documents explained above, the lawyer will draft and file all the government documents used during the business registration process. This includes securing legal permits and licenses from the county, state, and federal governments.
Most entity formation lawyers are well-versed with the costs of resources needed to set up a business. They can help you determine the start-up costs of your venture with accuracy.
In case you are forced to file or face a lawsuit, you will already have a lawyer on board who can make a case for, or defend the business.
Entity Formation and Structuring At Versant Law
Versant Law attorneys provide advice to entrepreneurs on the best way to structure a business to ensure its ongoing success. We work with all types of businesses, including sole proprietorships, partnerships, limited liability companies, and cooperatives.
We handle all the legal paperwork and help new businesses put legal and financial structures in place during entity formation. We also review existing structures and can recommend measures that eliminate business inefficiencies.
Contact us today and learn how we can help your business grow.