6 Reasons to Hire a Business Formation Lawyer
6 Reasons to Hire a Business Formation Lawyer
Hiring a business formation lawyer sets your business up for success and allows you to focus on making money. Let’s get into more below.
1. Deciding on Your Business Structure
A business structure, also known as a business entity, is something that you must have in place well before you can start your operations. By default, businesses that do not formally decide on one structure or another will be classified as either sole proprietorships or general partnerships, depending on the number of owners. These classifications offer no liability protection whatsoever, as legally, you and your business are considered one and the same.
Those seeking to legally separate themselves from their business in order to enjoy liability protection can choose between corporations, limited liability companies (LLCs), or limited liability partnerships (LLPs). In these situations, liability protection means that your personal assets (such as your home and vehicle) will not be fair game should things go south. Debt collectors can only to take what has been invested into the company.
Depending on your end goal, you might also consider forming as a limited partnership, or even a nonprofit corporation. It’s important to sit down with a business formation lawyer who can help you to decide which structure will work best for you.
2. Naming Your Business
Naming things is easy, right? You might have named a family pet, or even a small child if you’re a parent. Unfortunately, naming your business is a little more complicated, but the right lawyer will be an invaluable asset here. After all, failure to abide by the State of Florida’s business name regulations can mean legal trouble in your future. It’s very important, for instance, that your business’s name does not infringe on another company’s trademark. A business formation lawyer knows how to perform a trademark search for you and help you apply for trademark protection for your own business name should you desire it.
Read more on naming your business here.
3. Minimizing Your Risks
It’s no secret that starting a business carries certain risks, and we aren’t just talking about what happens should your venture go under. There are laws at every level – federal, state, and even local – that must be obeyed, and failure to comply can mean fines, penalties, and even litigation.
Between anti-discrimination and wage laws to health and safety regulations, it can be hard for the layperson to keep track of it all. The law might also require you to implement certain policies or provide certain educational materials to your employees. Do the smart thing and find a local business lawyer who can help you stay licensed and compliant with the law.
4. Your Operating Agreement or Bylaws
An LLC’s operating agreement and a corporation’s bylaws serve more or less the same purpose: to codify some general guidelines for operating your business. Be sure to include:
- How to reach decisions
- When and how shareholder meetings are held
- How to handle LLC ownership changes
- How to issue shares of stock.
A business formation lawyer can help draft the right operating agreement or bylaws for your company. For more information on what to include in Florida Operating Agreements, check out our rundown here.
5. Protecting Your Intellectual Property
With the internet reaching nearly every home in Florida, it’s never been easier for thieves and ne’er-do-wells to steal and take credit for the creative content of others. But they aren’t just after the hottest Instagram photos and other works of commercial art – there are plenty of people out there prowling around in the hopes of snatching up another business’s name, logo, or slogan. Some even copy entire websites!
Any business that holds a copyright would benefit from investing in trademark protection. A lawyer can help with copyright, trademark, or patent registration as well.
6. Finding the Right Contracts for You
A well-drafted contract is a shield against disputes, litigation, or other troubles. Contracts exist for almost any agreement imaginable and cover everything from non-disclosure agreements to shareholder redemption. Free templates are available found online, but can be more of a risk than a convenience. Only a lawyer can help ensure that all your bases have been covered and that the agreements aren’t written against your favor. They might even save you money in the process, too.
Ultimately, a business formation lawyer is there to watch your back and to make sure that your business launches smoothly. They can spot potential issues that are often invisible to the rest of us. They are an entrepreneur’s best ally, more often than not.
Looking to start a business or grow your current business? Contact FL Patel Law today by visiting our website or calling 727-279-5037.