what do i need for my attorney when i try to form a business

Why do people need an attorney?

Some people prefer to have an attorney form their business simply because they provide peace of mind that the startup process is handled correctly.

What happens if you file an LLC incorrectly?

If your formation documents are filed incorrectly, they will be rejected and you won’t be able to start doing business, so it can be worth it to make sure they’re submitted right the first time! And let’s be honest, as an entrepreneur, you simply might not have the time to form an LLC yourself.

Can I outsource my business formation to an attorney?

You no doubt have a lot on your plate, and it can save you a bunch of time to outsource your formation process to an attorney. If you already have a business lawyer helping you with other services – like trademarks, copyrights, lease agreements, etc. – it can be easy to roll formation duties in too.

Do I need a lawyer to form an LLC?

Even though we just said there isn’t a simple yes or no answer to the question, we should note that legally speaking, you do not need a lawyer to form an LLC. But beyond the fact that lawyers are not required by the state or federal governments, the answer gets more complex.

Filing a Certificate of Formation or Articles of Incorporation is Simple

Forming a company is simple. You can file a Certificate of Formation or Articles of Incorporation (the form you file with the Secretary of State is called different things in different states and depending on what type of entity you are forming) without a business lawyer.

The Rest of Forming a Company is More Complicated

Filing a Certificate of Formation, Articles of Incorporation or Articles of Organization is just the first, simple step. There are resolutions you need to create (often called Organizational Resolutions) and you will want to obtain a federal employer identification number (EIN). These are fairly straight forward things, as well.

Can I Just Use LegalZoom or Clerky to Form the Company?

Sure. Online services like LegalZoom and Clerky get the job done. I’m not vouching that they’ll never make a mistake, although I don’t think it’s all that likely. They file lots of entity formation documents. This makes them good choices for solo founders on very tight budgets. For other founders, they probably aren’t the right solution.

When Should I Use a Business Attorney to Form an Entity?

If you are a sole founder with a small budget, the DIY approach may be perfect for you.

Added Value from Corporate Attorneys

At some point, if you grow, you will want to invest in a strong business lawyer who can create documents that are customized to your company and your cofounders in the contexts where it matters the most.

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).

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).