Having an accountant or tax attorney advise you both during and after the incorporation process will allow you to best determine the potential tax benefits of electing S Corp status, based on the characteristics of the corporation and its shareholders.
There are several different types of attorneys that could be beneficial in starting a business. Examples include general business attorneys, contract attorneys, and tax attorneys.Aug 3, 2020
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AnswerWhat kind of lawyer do you need for a corporation?
But if you want legal assistance navigating the process, you'll want to find a corporate attorney who focuses their practice on nonprofit organizations and has experience in this realm. A business attorney who represents corporations and LLCs —as opposed to nonprofits—will probably not have the relevant experience you need.
Do I need a lawyer to start an S-Corp?
Jun 15, 2010 · They must prepare bylaws and other documents, and they have a far more complicated ownership structure. You'll almost certainly need an attorney to help you start any type of corporation, An S-corp starts as a corporation then elects S corporation status with the Internal Revenue Service. If it sounds complicated, it is. You might need help.
Do I need a lawyer to start my own business?
Oct 15, 2021 · Peter Home, with the firm Geoff McDonald & Associates, says, "An attorney can guide you through the process as well as teach you the ins and outs of how your company will need to operate once incorporated." A legal consultation can help an owner determine which corporate entity will be most advantageous and how to get the most out of incorporating the …
How do I find a small business lawyer?
Dec 08, 2004 · In terms of the type of attorney most beneficial for starting a business, a business attorney may prove to be the best fit. This is because they are knowledgeable in a variety of topics that will likely apply to your small business. They can help those who are looking to start their own business, or are facing disputes involving their current small business. The attorney can also …
Why do I need an attorney?
The most common reasons for needing an attorney are: 1 Navigating the many forms and requirements of legal documents, like incorporation documents, that are involved. 2 Assurance the startup is being done right. 3 Enabling you to focus on other aspects of the business so you don't have to spend time learning the legal processes. 4 Support with specific tasks like trademarking your name, reviewing lease documents, discussing potential legal structures, and preparing incorporation forms. 5 Online legal form providers don't always do it right. Businesses aren't one-size-fits-all, so blanket legal documents don't always work.
Do I need an attorney to start a business?
The simpler your business, the less you'll need an attorney. A sole proprietorship is the simplest business form. It doesn' t require that you register your business with your state, so no, you probably don't need an attorney ...
Can I register my business online?
You might be able to register online with your state or use an online service to register your business, but it might be a good idea to use an attorney if your business is at all complicated. Corporations or S corporations must register with the state as well.
How to organize a corporation?
There are multiple benefits to organizing your company as a corporation: 1 A corporation limits your personal liability and may make tax breaks available to you. 2 Your corporation can take tax deductions for the cost of health insurance and life insurance. 3 Incorporating also means people will take your company seriously and you can set the stage for future expansion of your business. 4 You can raise capital for the business through the sale of stock. 5 Ownership in a corporation can be transferred easily should you decide to sell.
What are the benefits of a corporation?
There are multiple benefits to organizing your company as a corporation: A corporation limits your personal liability and may make tax breaks available to you. Your corporation can take tax deductions for the cost of health insurance and life insurance.
Can I incorporate a business without a lawyer?
And, yes, it is possible to incorporate without using a business attorney.
What does incorporation mean?
Incorporating also means people will take your company seriously and you can set the stage for future expansion of your business. You can raise capital for the business through the sale of stock. Ownership in a corporation can be transferred easily should you decide to sell.
Why are small businesses so popular?
Because of their relative ease of operation, and certain tax deductions being made available , small businesses are becoming more popular. Some other examples of why small businesses are gaining popularity include, but are not limited to: Starting incentives, such as financing options.
What is a small business?
What constitutes a small business can vary greatly. In general, a small business is privately owned and operated with less than five hundred employees. They may also be defined by a relatively low volume of sales. Small business standards in the United States vary by state, as well as by industry. Because of their relative ease ...
How many employees are needed to start a small business?
For manufacturing industries, small businesses are to employ less than five hundred employees; for non-manufacturing industries, the criteria is typically less than $7 million in annual income.
What is financial independence?
Financial independence; and/or. Starting incentives, such as financing options. Small businesses typically take the form of a corporation, partnership, or sole proprietorship. Another commonly used term is “ startup .”.
What to keep in mind when starting a small business?
Some examples include but may not be limited to: Research: It is imperative to do your research before starting a small business. This could include things like researching your competition and finding the best suppliers for materials.
What is the most common form of business?
The most common form is an “ LLC ,” or limited liability company. The state in which you wish to form your business may also dictate what form that business takes, as well as tax incentives and implications associated with particular forms; and.
What is the best way to grow a business?
Teams and Marketing: You should identify those who will be able to get your business started. This is your team, and they will help you grow your business if you cannot do it alone. Related to your team is your marketing strategy. Solid marketing is what will help your business grow and expand.
Nonprofit Versus Profit
According to corporate attorney Michael Murray from Austin, Texas, setting up a nonprofit organization is similar to setting up a for-profit corporation but for a few unique issues. For example, in Texas, nonprofits are not required to have the words “incorporated” -- or its abbreviation “Inc.” -- or “company,” in its name.
Federal Taxes
Federal tax status is another issue that differentiates nonprofits from for-profit corporations – and a typical reason for founding a nonprofit organization.
Federal Filings
You must apply to the Internal Revenue Service (IRS) for non-profit status. Attorney Murray cautions that the application is extensive, requiring voluminous data – far more onerous than state filings. As of 2012, the IRS application was over 25 pages long; with attachments, expect it to at least double in size.
Other Corporate Professionals
If you elect not to engage a corporate attorney to help you start your nonprofit, the Society for Nonprofit Organizations recommends that you at least hire one to review your application and related paperwork. Murray also suggests that a corporate attorney with a tax background would be an asset.
How do I start an LLC?
You can form an LLC by filing articles of organization and paying a filing fee with the Secretary of State in the state where you plan to operate your business.
Do I need an attorney to start an LLC?
Hiring an attorney or consulting an online legal service provider is not one of the requirements for starting a limited liability company (LLC), but it is often helpful as you create your organization.
Is it necessary to have an LLC?
Although it's not a requirement for the legal formation of an LLC, hiring a small business attorney can be beneficial, as the advantages of having a professional do the work for you often outweigh the cost. Using an attorney to prepare and file the required documents with the Secretary of State helps you avoid making mistakes when starting your LLC.
Can I use an online service provider to form an LLC?
Using an online service provider to help you form an LLC is an option that provides a middle ground between doing it yourself and hiring an attorney. It's usually less expensive than an attorney and can help you avoid many of the common mistakes that can occur from doing it yourself.
Is LegalZoom legal advice?
The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.
What are the most important things to do in business?
10. Contracts. Most businesses execute contracts for space, services, and supplies. Businesses often have agreements between partners, investors, and employees. It is important to get it right so you don't end up in court. 9. Registering, Licensing, and Permits.
Can I start a business by myself?
Some people opt to start the business by themselves or with family members, while others have partners or other investors who will not be involved with the day-to-day affairs of the business. The laws that apply to start-up businesses differ based on the specifics of the situation, and even business people who decide to go it alone have options ...
What is the choice of business form?
The choice of business form (i.e. sole proprietorship, partnership, LLC, or corporation) often dictates the legal responsibilities and potential liability of those involved in leading the business, as well as the manner in which it may operate.
Can I do business in another state?
The preconditions to forming and conducting a business entity in one state may not be accepted in another state. If you are not careful, the protections you have in your home state of operations may be lost if you do business in another state. See the State Business Laws section for more details. 6. Strict Conformity.
What is the most important thing to consider when starting a new business?
The only thing more crucial to a new business is liability . 1. Liability. Different business forms provide different protections and risks to the business owner/investor. Personal liability means that your business puts everything you own at risk. An attorney can help you avoid this situation or minimize your risk.
Do I need a lawyer for my startup?
In most cases, you're going to need the services of a lawyer for your startup, perhaps for tax services or employment law compliance. Whatever the reason, make sure you contact the right attorney for your needs.
What is a corporation?
A corporation is a business structure that allows owners to establish their company as a separate legal entity. Incorporated companies enjoy “corporate personhood,” meaning that, like a person, they have the right to enter into contracts, loan and borrow money, sue and be sued, and so on.
How to choose a corporate name?
The name of your corporation must not match or be similar to that of an existing corporation. Check with your local secretary of state’s office to see the availability of your proposed name.
Who is not personally liable for a corporation's debts?
Because of this, the owners and shareholders of a corporation are not held personally liable for its debts and obligations. Corporations have a two-level structure. The first level is the ownership level. Typically, shareholders are the ones who own a corporation.
Do directors have to be shareholders?
Officers and directors do not necessarily have to be shareholders, although they can be. Typically officers and directors may double as shareholders in smaller firms, but not in larger firms. The most basic corporation is known as a C corporation.
What are the benefits of a corporation?
Perhaps the most significant benefit of corporations is that they offer personal liability protection to shareholders. Owners are only responsible for the amount they invest in the company, and their personal assets are not subject to seizure. This is different from what’s offered by sole proprietorships and general partnerships where owners are responsible for the debts and obligations of the company.
Can a C corp be an S corp?
All businesses begin as a C corporation. After registering as a C corp with their state’s Secretary of State’s Office, owners can then elect to become an S corp by filing IRS Form 2553, Election by a Small Business Corporation.
What are the advantages of electing a corporation?
Electing corporation status offers numerous tax advantages. For instance, owner-paid health insurance premiums are tax-deductible. Owners can also save from having to pay Social Security, Medicare, and Workers Compensation taxes, which corporate income is not subject to. Furthermore, as mentioned, S corps allow owners to opt in to pass-through taxation.
What is a consigliere?
Consigliere – A Sounding Board. Whether you are starting your first company or your fiftieth, early days generally bring long hours, hard work, and a multitude of questions both legal and not, often in what amounts to a vacuum for the new founders.
How many bills has Jerry Brown signed?
California Gov. Jerry Brown recently completed acting on the 1,217 bills that came across his desk this year. He has signed 1,016 of them into law, with the majority taking effect...
Where did Richard Hoeg go to law school?
Richard ("Rick") Hoeg received his undergraduate degree in Economics from Hillsdale College before attending the world-renowned University of Michigan Law School where he graduated in the top 5 of his class.
Is the modern world a specialized one?
The modern world is a specialized one. That business you’re starting ? It probably isn’t aimed at being a multinational conglomerate (at least, not from the start). Instead, chances are you’ve decided to start a business because you’ve identified a hole in the market or an underserved customer base; a place where your specialized knowledge or skill will help differentiate your brand from everyone else’s.
What is limited liability?
The entire purpose of the corporate (or LLC) structure is to limit an investor’s exposure solely to the assets it puts into the entity. In other words, to make sure you don’t lose your house.
What is an estate planning lawyer?
The estate planning lawyer specializes in wills and trusts, and can help you to draw up a will to pass on your assets. Among other estate planning legal services, this type of lawyer can help you set up a trust which will help take care of your children’s financial needs.
Do doctors make mistakes?
Doctors do occasionally make mistakes, and if you’re facing the consequences of a medical mistake such as a medical misdiagnosis or inaccurate treatment, a lawyer who specializes in medical malpractice issues can be particular helpful.
What is an IP lawyer?
Also known as an IP attorney, an intellectual property lawyer can advise you with regard to issues relating to intellectual property, such as copyrights, trademarks, patents, industrial design and trade secrets.
What is an employment lawyer?
Employment Lawyer. Whether you’re a company that’s having a problem with an employee, or an individual who’s having problems with the company you work for, an employment lawyer can generally provide advice about legal issues which arise from an employment contract or within an employment relationship.
What can a corporate lawyer do for you?
A corporate lawyer will be able to help you with issues related to the formation of your corporation, general corporate governance issues and corporate compliance issues.
What is a worker's compensation lawyer?
If you’ve been injured while on the job, or have had to face the death of a loved one as a result of a workplace accident or occupational disease, a lawyer who specializes in workers compensation law can help you navigate the issues you face, such as the extent of the employer’s fault and the amount of benefits to which you are entitled.
What is general practice law?
Unlike lawyers who specialize in a particular area of law, a general practice lawyer has a practice that handles a wide range of legal issues. Different general practice attorneys will have different areas of law with which they are most comfortable, so if you consult with a general practice lawyer, it’s always prudent to discuss his or her experience in handling the type of legal issue you’re facing.
What Is A Corporation?
A corporation is a business structure that allows owners to establish their company as a separate legal entity. Incorporated companies enjoy “corporate personhood,” meaning that, like a person, they have the right to enter into contracts, loan and borrow money, sue and be sued, and so on. Because of this, the owners and shar…
The Benefits of Forming A Corporation
- Why should you create a corporation? Let’s take a look at some of the benefits this business structure offers.
The Downsides of Forming A Corporation
- Although corporations can offer numerous benefits, there are a couple of disadvantages potential owners need to consider.
How to Start A Corporation
- If you’ve weighed the pros and cons and determined that a corporation is right for you, you’re likely curious about what to do next. Starting a corporation is a bit tedious, so it’s critical that you’re diligent during the registration process. The following is a step-by-step guide to creating a C corporation.
Start Your Corporation Today
- While the process for incorporation may be complicated, there are many benefits to doing so. If you elect this business structure, it’s vital to fulfill corporate requirements in order to maintain corporate personhood and liability protection. Make sure you perform due diligence when filing and seek legal assistance if needed. If you register correctly, choosing a C corp structure could …
Expertise – Navigating The Sea of Options
- The modern world is a specialized one. That business you’re starting? It probably isn’t aimed at being a multinational conglomerate (at least, not from the start). Instead, chances are you’ve decided to start a business because you’ve identified a hole in the market or an underserved customer base; a place where your specialized knowledge or skill will help differentiate your bra…
Experience – They’Ve Seen It Before
- You probably didn’t get your great business idea just from reading books about great business ideas, and attorneys didn’t get where they are solely by reading statutes, case studies, and bar review articles. Depending on the attorney, chances are they have worked on dozens if not hundreds of company formations. There is significant value in that experience, in knowing how t…
Cost – Saving More Than You Spend
- No one wants to spend money on things they don’t need, especially a brand new start-up paying every single cost out of pocket. But while it is easy to approach legal fees as a “cost center”, especially in the early days, for the most part it is anything but. Consider the average company. Your company. Consider the time and expense needed to (i) ship a product or service exactly as …
Consigliere – A Sounding Board
- Whether you are starting your first company or your fiftieth, early days generally bring long hours, hard work, and a multitude of questions both legal and not, often in what amounts to a vacuum for the new founders. Having a good attorney on call can be useful for more than just asking questions about the Delaware General Corporation Law. Your attorney will have seen many busi…
Networking – The First Professional
- Running a business (and funding one), is not an easy task. In the course of a given year, the average small business might need: (i) general company counsel, (ii) accounting services, (iii) banking services, (iv) payroll services, (v) labor counsel, (vi) IP counsel, (vii) real estate services (or counsel), (viii) funding sources(angel, institutional, or otherwise), etc. For the same reasons t…
Limited Liability – The Reason For All This
- Though last on this last, the concept of “limited liability” is perhaps the most important one to discuss. In general, you are putting yourself through all the effort, expense, and time commitment of creating a separate legal entity because you don’t want your new business’s liabilities to be your own. The entire purpose of the corporate (or LLC) structure is to limit an investor’s exposur…
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