questions checklist to ask an attorney when forming an llc

The 12 Essential Question Will the LLC be member-managed or manager-managed? How will you split up the membership interests? How is the company going to be financed?

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What are some questions to ask when starting an LLC?

Be sure to check the LLC statute in your state of formation to make sure your preferred LLC name satisfies all legal requirements. You will also need to make sure that the name you want is available in your state. See 50-State Guide to Forming an LLC. The good news is that you can always change the legal name of your LLC if you need to.

Do I need an attorney to form an LLC?

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How do I start an LLC in my state?

Forming an LLC Checklist. by Practical Law Corporate & Securities. Related Content. Maintained • USA (National/Federal) This Checklist presents questions to consider when forming a limited liability company (LLC).

What documents do I need to set up an LLC?

Nov 16, 2020 · Step One: Business Structure and Name. First, you'll want to choose a name and business structure. There are four different types of businesses when it comes to legal structure: Sole proprietorship. Partnership. Limited liability company (LLC) Corporation (C-corp or S-corp)

What questions should I ask about LLC?

Five Questions to Ask Before Forming an LLCIn What State Should I Form My LLC? A variety of factors can determine the state in which you decide to form your LLC. ... What Will I Name My Company? ... Do I Have Investors? ... Who Will Own and Manage the Company? ... Do I Have an Accountant or Tax Lawyer?

What questions should I ask a startup lawyer?

7 questions to ask your startup lawyerDo You Work With Companies Comparable to Mine? ... How Do You Bill? ... Will I Be Comfortable Working With You? ... What Is Your Focus? ... What Is Your Past Experience? ... Are You the Best in the City? ... What Is Your Age and Experience With Technology?Aug 3, 2013

What are good questions to ask lawyers?

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 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?

How do I choose a law firm for a startup?

Choose a Startup LawyerHow to: Choose a Startup Lawyer. ... Choose a trusted partner. ... Look for a partner whose experience aligns with your needs. ... Initiate an open conversation about priorities and response time. ... Decide whether to partner with a big firm or a small firm. ... Ask about fees. ... Questions for prospective lawyers.More items...

How do I choose a startup lawyer?

Regardless of the source, there are several key things to consider when selecting a startup lawyer or law firm.Consider the Relationship. ... Finding the Right Lawyer. ... Create a List of Initial Legal Needs. ... Consider Location. ... Aligned Goals. ... The Right Connections. ... Determining Cost. ... Get a Client Referral.More items...•Mar 9, 2019

What do most lawyers charge for a contingency fee?

Typically the contingency rate free ranges from 33%-45% of the recovery. A contingency fee agreement is a payment arrangement that enables injured victims pursuing legal recourse to have legal representation, even if they do not have the financial ability to pay a lawyer out of pocket.Aug 3, 2021

How do you answer legal interview questions?

Below are some common legal interview questions—plus suggestions on how to approach them.Tell me a little about yourself. ... What attracted you to our firm/organization? ... Can you describe a challenge or conflict you have faced at work and how you overcame it? ... What is your biggest weakness? ... Do you have any questions for us?Mar 20, 2021

Should you always ask for a lawyer?

If you spontaneously or voluntarily speak without being questioned, your words can be used against you. Not only is it good to ask for an attorney, but you should also stop speaking until you have a chance to consult with an attorney on your case.

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).

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.

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.

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).

What is a broadcasting company?

A company involved in broadcasting. Any company providing ground transportation. Any company planning to sell alcohol, tobacco or firearms. If your business doesn't require a federal permit or license, it might still require one from the state.

What is a commercial realtor?

Commercial realtors are a great resource when searching for company space. They can help make sure you'll have everything you need in place for day one of doing business. Another very important part of a startup is making sure you have all the proper licenses and permits for the type of business you plan to run.

What are the different types of business?

There are four different types of businesses when it comes to legal structure: Sole proprietorship. Partnership. Limited liability company (LLC) Corporation (C-corp or S-corp)

What is the FEIN number?

Before you can open a company bank account, apply for any business loans, or begin a payroll, you'll need to get an FEIN (Federal Employer Identification Number) through the IRS (Internal Revenue Service).

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 is an LLC operating agreement?

Corporate bylaws and LLC operating agreements provide important guidelines for operating your business. These documents explain how decisions will be made, when and how shareholder meetings are held, how to handle LLC ownership changes, and how shares of stock are issued.

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 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 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 ...

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 ...

Do I need a patent lawyer?

And if you have an invention, you may need to apply for a patent. A business lawyer can help identify your intellectual property, advise you on protecting it, and assist with copyright or trademark registration. For patents, you will need a patent lawyer. 6.

Business Name

Before your begin the registration process, you and your lawyer should discuss the potential name for your new business. Ask your lawyer if she has experience researching business names that are already in use in your state. Also, when forming your LLC you may wish to consider trademarking your name.

Registration

You should ask your lawyer about the general information required for registration, including how you should structure your fiscal year, if your state requires disclosure of all investors and what other general information your state requires for the actual registration of your LLC.

Operating Agreement

You will want to discuss the creation of an operating agreement with your attorney. The operating agreement for an LLC spells out how investments will be handled, who will mange the LLC, how business will be conducted and how ownership of the LLC will be structured.

Other Filings

In addition to filing your registration documents and drafting an operating agreement, you should ask your attorney what other forms will need to be filed in order to lawfully operate your business as an LLC. If you are hiring employees, you may need to apply for a federal tax ID.

What is a registered agent?

A registered agent is a person or business who represents the business for legal correspondence. Registered agents are regulated under state laws. Most states require that you use a mailing address, not a PO Box, for the registered agent. If you are registering your LLC in another state, you must find someone with an address in that state to serve as the registered agent. While you can serve as your own registered agent, it's better to have a specific registered agent service. 7 

What does "doing business" mean?

" Doing business " means that you have specific types of business activity in that state. For example, you are "doing business" in a state if: 1 Your business has a physical presence in the state 2 You often have in-person meetings with clients in the state 3 A significant portion of your company’s revenue comes from the state 4 Any of your employees work in the state 8 

What is operating agreement?

The Operating Agreement is an internal document of the LLC and is not filed with the Department of State.". 3 . Even if you decide to file the Articles of Organization yourself, you should get an attorney to help you write the Operating Agreement, because it's a contract.

Is a corporation the same as an LLC?

A corporation is a separate business entity from an LLC. 4 . You can elect to have your LLC taxed as a corporation, but that's not the same thing. An LLC taxed as a corporation still has the legal structure of an LLC.

Is a multiple member LLC a partnership?

A multiple-member LLC is taxed as a partnership, but an LLC should manage operations through an Operating Agreement, which functions in similar way as a partnership agreement but is just called by a different name.

Can you name an LLC?

Otherwise, you can name your LLC anything you want as long as another company is not using that name or a very similar name in your state.

Distributions

• 6. Who will determine when distributions are to be made? 7. How will the members share in distributions? Will there be any preferences, or will all distributions be made pro rata? 8. Will members be compensated for services they render to the LLC (beyond their rights to participate …

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Governance

Transfers of Interests; Buy/Sell

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