questions attorney should ask when determing who the cliet is in a business entity

by Keeley Hartmann 7 min read

Who is the client when a lawyer representes a corporation?

Jan 01, 2004 · Recognizing that possibility, Rule 1.18 defines a pro­spective client as “a person who discusses with a lawyer the possibility of forming a client-lawyer relationship.”. The comment to the ...

What questions to ask a business lawyer before starting a business?

Aug 31, 2015 · CPAs should also address liability, explaining for each type of entity who will be liable for business debts. Finally, accountants should ask about plans for the future. “You just can’t look at this year,” Rowe advised. “You have to look at your clients’ ultimate plans for the company. Do they expect to bring in foreign investors?

How do you identify a corporate client?

Nov 28, 2019 · Below are five questions that you should expect from your lawyer during your first meeting. 1. What is your case about? A lawyer will want to know every single detail of your case. This includes the circumstances that forced you to file the suit. When answering this question, be as honest as possible.

What questions should I Ask my Lawyer when meeting with him?

These questions we ask are based upon our years of experience in handling slip, trip and fall matters and are designed to discover the relevant facts of our client’s case. Questions we ask …

What are some questions an attorney might ask a new client?

What Questions do Lawyers Ask Their Clients?What is your case about? A lawyer will want to know every single detail of your case. ... What do you hope to accomplish? ... How do you want us to communicate? ... Why did you choose me? ... Are you comfortable with my rates?Nov 28, 2019

What questions should lawyers ask?

Questions to Ask Your Lawyer During a Consultation1) What kind of experience do you have with similar cases?2) What would be your strategy for my case?3) Are there any alternatives to going to court?4) What are my possible outcomes?5) Who will actually handle my case?6) What is my role in my case?More items...•Jan 29, 2017

What sorts of questions would one want to ask before selecting a business organization?

10 Essential Questions to Ask Before Selecting a Business EntityAre you planning to run your company on your own or with others?Are the others going to be equal partners?Are the others intending to help operate the business or just invest in it?More items...•Jan 18, 2019

What questions should I ask a corporate lawyer?

General QuestionsHow long have you been practicing law?What do you specialize in?What are your main roles and duties? What goes beyond that scope?How do you bill?What companies do you generally work with? ... Are you experienced with startups?Are you familiar with the laws of incorporation in my specific state?

What are the questions asked in client interview?

Client Interview Questions You Should Be Ready to AnswerWhat Are Your Prices? ... What's Your Working Process? ... What Happens if We're Not Happy With Your Work? ... What Experience Do You Have? ... Why Do You Think We're a Good Fit? ... What Value Can You Bring to Our Business?Nov 9, 2015

What are 3 questions you should ask a lawyer before hiring?

Below are ten questions to ask your potential lawyer.How long have you practiced law? ... What type of cases do you generally handle? ... Who is your typical client? ... How many cases have you represented that were similar to mine?More items...•Apr 13, 2018

What are some basic questions to ask when deciding on the legal form to choose for a small business?

Here the factors are presented in the form of questions you can ask yourself:Who will be the owners of the company? ... What level of liability protection do you require, especially for your personal assets? ... How do you expect to distribute the company's earnings?More items...•Mar 26, 2016

What factors should be considered while choosing a legal form of business organization?

9 Factors Governing the Selection of a Suitable Form of Ownership Business OrganizationNature of business activity: ... Scale of operations: ... Capital requirements: ... Degree of control and management: ... Degree of risk and liability: ... Stability of business: ... Flexibility of administration: ... Division of profit:More items...

What are some important factors to consider when choosing an organizational type?

The following are some of the important factors business owners should consider when selecting a form of ownership.Cost of Start-up. ... Control vs. ... Profits—to Share or Not to Share. ... Taxation. ... Entrepreneurial Ability. ... Risk Tolerance. ... Financing. ... Continuity and Transferability.

How do you answer corporate law questions?

1:358:50How to answer: Why commercial law? - YouTubeYouTubeStart of suggested clipEnd of suggested clipDay if you're asked about them later there's a famous quote that. Goes. If you remember what. You'veMoreDay if you're asked about them later there's a famous quote that. Goes. If you remember what. You've. If there you go if you tell the truth you don't have to remember.

How do you prepare for a corporate law interview?

8 ways to prepare for a legal job interviewHighlight your successes. ... Be knowledgeable about what you've done. ... Frame your experience for the role. ... Know what's going on. ... Sell your soft skills. ... Prepare your questions — and your answers. ... Relax and be yourself.

What do you understand by business law?

business law, also called commercial law or mercantile law, the body of rules, whether by convention, agreement, or national or international legislation, governing the dealings between persons in commercial matters.

Why is it important to meet with a small business attorney?

Meeting with a small business attorney is an important way to get your business off to a good start and minimize future risks. Here are questions to ask at your first meeting. New entrepreneurs have their hands full, making plans, developing products and services, and lining up financing.

What does a business lawyer do?

A business lawyer can explain how to start a business and answer your business law questions. But more importantly, a lawyer can identify the risks you face and help you minimize them. When you meet with your lawyer for the first time, it’s a good idea to have some questions in mind.

How to start a business off on the right foot?

Always ask your business attorney to assess your risks and identify ways to alleviate them. Getting business advice and legal help from a small business lawyer is a smart way to start a business off on the right foot. But don’t lose touch with your lawyer once your business is up and running. Make it a habit to seek business legal advice regularly ...

What is a limited partnership?

Other options include a limited partnership, in which some partners are fully liable for business obligations, and others are not, and a nonprofit corporation.

What to do before starting a small business?

Before starting a small business, you must decide how your business will be structured. If you do not form a formal business entity, your business will either be a sole proprietorship (with one owner) or a general partnership (with more than one owner). Legally, you and your business will be the same “person,” so if your business has debts ...

What are the federal laws?

Federal laws range from anti-discrimination laws to health and safety regulations to wage and hour laws. You may need policies and procedures, handbooks, and training to ensure that you don’t inadvertently violate them. You must also comply with state laws relating to such things as the minimum wage.

How does a contract protect a business?

Contracts protect your business by describing the rights and responsibilities of the parties to the agreement. A well-written contract can reduce the number of disputes that arise, ensure that you get paid for the work you do, and provide a clear remedy if one party doesn’t hold up its end of the deal.

What does it mean when a client tells you that they chose your law firm because you came highly recommended?

However, if a client tells you that they chose your law firm because you came highly recommended then you know that quality is a high priority to the client. The answer to this question can also give you insight into what a client is expecting. For example, if the client says they were impressed by your guarantee of fast communication then you know ...

What is a lawyer/client relationship?

Creating a strong lawyer/client relationship is about timely delivery and stellar service, but it’s also about understanding your client and their needs and never making assumptions. Creating a strong lawyer/client relationship is about timely delivery and stellar service, but it’s also about understanding your client and their needs ...

Why do clients choose law firms?

If they tell you that your firm was chosen because you’re cheaper, you know that funding their legal needs is a primary issue . However, if a client tells you that they chose your law firm because you came highly recommended then you know that quality is a high priority to the client. The answer to this question can also give you insight into what a client is expecting. For example, if the client says they were impressed by your guarantee of fast communication then you know that they expect fast responses to questions. Keep track of the important reasons the client gives for choosing your law firm and let those answers inform how you handle your relationship with them.

What do CPAs need to know?

CPAs first need to find out where their clients plan to do business. Each state has its own rules when it comes to entities, and these rules can impact the bottom line. For example, Rowe said, “California has an entity-level tax on S corps. at 1½% of income, and the state has an LLC fee that is based on gross revenue.”.

What should a CPA do if a company plans to do business abroad?

Additionally, if the company plans to do business abroad, a number of tax and nontax issues need to be considered to ensure that the entity chosen is the best from a global perspective. CPAs should also address liability, explaining for each type of entity who will be liable for business debts.

What should accountants do?

Accountants should also determine the economics of the business —such as how the company will deal with profits and losses, how earnings will be funneled back to the business, and how the owners plan to be compensated.

What are non-tax considerations?

Nontax considerations include ease and cost of formation; flexibility of structure (and whether it can change as the business grows); who is liable for the business’s debts; compensation arrangements; and, if outside investors are needed, what structure will be most attractive to them.

Who is Cheryl Meyer?

Cheryl Meyer is a freelance writer based in California.

Is S corp simpler than partnerships?

While tax decisions may not drive the choice-of-entity decision, CPAs should make sure clients are clear on the tax impacts and explain the differences. “S corps. are simpler than partnerships in taxation,” Schneider added. “An S corp. is very straightforward.”.

What does a lawyer need to know?

Your lawyer needs to know the results you desire at the end of the suit. It helps them to work towards attaining them. For instance, if you want monetary compensation for something terrible that was done to you, let them know. Do not forget to tell them the amount you think would be enough for you.

Do lawyers want to know your case?

A lawyer will want to know every single detail of your case. This includes the circumstances that forced you to file the suit. When answering this question, be as honest as possible. Do not withhold any important information from your attorney. It will increase your chances of winning in court.

Can a lawyer negotiate with a client?

You can even ask them to lower them for your convenience. Most lawyers have no problem negotiating with their clients. These are some of the many questions that your attorney might ask you during your first meeting. Be as genuine as possible because it will lay a solid foundation for your working relationship.

What is the number one candidate for entrepreneurs who are more comfortable with working alone?

The sole proprietorship is the number one candidate for entrepreneurs who are more comfortable with working alone. From the phrase itself, it is easy to derive that the owner of the business is just one person who is most likely to be the manager as well.

Why is it important to keep proprietary information?

Keeping the proprietary information within the bounds of your business is important to make sure that business’ interest is protected. This applies not only to the employees but to all people who have significant involvement with the business like the individual contractors.

Why is information technology important?

The advent of information technology makes it easier for us to access information that we need. The internet is teeming with drafts of different contracts for small businesses. Even the processes that you need to follow in trade name and trademark registration is just as click away.

Is it risky to start a business?

But starting a business can be a very risky venture. The more you plan and strategize before you start your business, the more likely you will be able to succeed. Here are the 5 top questions to ask a business lawyer before starting a business. Before you start your business, make sure yourself you ask the following….

How to treat a C corp as an S corp?

To have the IRS treat your C Corp as an S Corp for tax purposes, you will need to make a Form 2553 tax election (Form 2553) when filing the company's federal tax returns. Your accountant or tax attorney can assist you with this process. Note that Form 2553 must be signed by all of the company's shareholders.

How many shareholders can a C corp have?

No shareholder can be classified as a partnership, corporation, or non-resident alien. The company cannot have more than 100 shareholders.

How to start an S corp?

The very first thing you should do before starting an S Corp is to determine whether or not your company will meet the legal standards required by the Internal Revenue Service (IRS). To operate your business as an S Corp, you must initially file your company as a regular corporation (C Corp) in your selected state of incorporation. To be eligible for S Corp status, the IRS requires that your C Corp meet certain specific criteria (S Corp Requirements), including, but not limited to, the following: 1 The company must be a domestic C Corp. 2 The company's shareholders (sometimes called stockholders in certain jurisdictions) must be individuals or certain allowable trusts and estates. 3 No shareholder can be classified as a partnership, corporation, or non-resident alien. 4 The company cannot have more than 100 shareholders. 5 The company can have only one class of stock. 6 The company cannot be an ineligible corporation (for example, certain financial institutions, insurance companies, and domestic international sales corporations are disqualified).

What can a tax adviser do?

Your tax adviser can also guide you on how to make and record periodic cash distributions to shareholders, if applicable.

Does an S corp have to be taxed at the entity level?

In contrast, an S Corp benefits from pass-through taxation from the IRS, meaning that it will not be taxed at all at the entity level.

Can a C corp be an S corp?

To operate your business as an S Corp, you must initially file your company as a regular corporation (C Corp) in your selected state of incorporation. To be eligible for S Corp status, the IRS requires that your C Corp meet certain specific criteria (S Corp Requirements), including, but not limited to, the following: ...

Can a company have only one class of stock?

The company can have only one class of stock. The company cannot be an ineligible corporation (for example, certain financial institutions, insurance companies, and domestic international sales corporations are disqualified). For further information regarding S Corp Requirements, see S Corporations.

How to manage an LLC?

Management of the LLC can take many different forms, particularly if there are multiple members are investors. Generally, management of an LLC will fall into one of the following categories: 1 You are the sole member, with no investor, and you fully manage the company. 2 The LLC has multiple members (possibly including an investor), but all the members agree that one person manages the company. 3 The LLC has multiple members (possibly including an investor), all the members agree that one person manages the company, but that person needs their consent before taking certain actions that are outside the ordinary course of business (for example, borrowing money, selling the company, declaring bankruptcy, and the like). 4 The LLC has multiple members (possibly including an investor), and all the members agree to manage the company together, perhaps by forming a board of managers (which is similar to the board of directors of a corporation).

Why do companies use fictitious names?

Fictitious names can be very useful if you want to vary your business' name by geographic location, or assign different names to separate divisions within the company. This allows you to avoid having to formally create new subsidiaries.

What can a tax adviser do?

Your tax adviser can also guide you on how to make and record periodic cash distributions to members, if applicable.

What are the advantages of an LLC?

One of the attractive characteristics of an LLC is the potential pass-through tax treatment. Having an accountant or tax attorney advise you during and after the LLC formation process will allow you to best take advantage of this benefit.

Can an LLC have multiple members?

The LLC has multiple members (possibly including an investor), all the members agree that one person manages the company, but that person needs their consent before taking certain actions that are outside the ordinary course of business (for example, borrowing money, selling the company, declaring bankruptcy, and the like).

Can an LLC have only one investor?

Having investors who expect to make returns on their investment can add complexity to your LLC in many ways. For example, if there is only one investor, then that person may want to be fully repaid before any other owners ( called members) receive distributions on their ownership interests (called membership interests).