what to ask an attorney when establishing an llc

Questions to Ask a Lawyer About LLC

• Business Name. Before your begin the registration process, you and your lawyer should discuss the potential name for...
• Registration. You should ask your lawyer about the general information required for registration, including how you...
• Operating Agreement. You will want to discuss the creation of an operating agreement with your...

Full Answer

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

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.

What do you need to set up an LLC?

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Do I need an LLC name for my Small Business?

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…. If you have any other questions about starting and growing your business ...

How can a small business attorney help you start your business?

Aug 13, 2021 · When To Use an Attorney for an LLC. A business attorney can save time and money when business owners create a new business. For around $200 to $5,000, they can handle the items you may not have time to consider, such as: Creating an LLC operating agreement explaining your company's who, what, when, where, why, and how (required in some states).

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 prepare for an attorney interview?

If you are interviewing virtually, all of these tips apply.Do your research. Lawyers are known for being good researchers. ... Be presentable and dress your best. ... Come prepared to ask questions. ... Be personable and show enthusiasm. ... Be genuine. ... Promptly send a thank-you note.Oct 28, 2020

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 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

What do you talk about with a business lawyer?

7 Questions to Ask Your Attorney Before Starting a BusinessWhat Business Structure Should I Choose? ... What Do I Need to Know About Choosing a Name for my Business? ... How Do I Minimize My Risks as an Employer? ... What Should Be In My Operating Agreement or Bylaws? ... How Can I Protect My Intellectual Property?More items...•Nov 9, 2020

Why do you want to be a corporate lawyer interview?

If you want to make big money, corporate law is for you. The lawyers get paid handsomely depending on the experience and knowledge they carry. The more time you spend on the field, the more your value grows in the market. Since there is demand, you can negotiate your way to a very rewarding position.Jun 16, 2020

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.

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 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.

Do small businesses have trademarks?

All small businesses potentially have trademarks that they use to identify the business and distinguish it from others. Your business name, logo, labels, slogans, and packaging can all be trademarks, but you must take steps to protect them. You may decide to register a trademark with the U.S. Patent and Trademark Office.

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.

How will an LLC be managed?

10. How will the LLC be managed? LLCs may be managed by their members (like general partnerships) or by one or more managers appointed by their members (either expressly in the operating agreement or by some voting or approval process). If a corporate model is preferable, LLCs may be managed by boards of managers that function like corporate boards of directors. If the LLC will have a board that functions like a corporate board of directors, how many people will be on the board, and how will those people be selected?#N#11. If an LLC has managers, the day to day affairs of the LLC may be managed by the managers or, if a corporate model is preferable, by officers appointed (usually) by the managers. If the LLC will have managers, will it also have officers? If so, what authority will the officers have?#N#12. If the LLC will have managers, what, if any, actions (e.g., issuances of additional interests, mergers, significant asset sales, significant capital expenditures, borrowings) will be subject to the approval of the members? Will particular members have special approval rights? Will particular actions require higher levels of approval than other actions?

When does an LLC dissolve?

Generally, an LLC dissolves if it becomes bankrupt, if a court orders its dissolution or if it has fewer than the number of members that it must have to continue under state law. In addition, the LLC should dissolve by the vote of the managers and/or some quantum of the members. 20.

What rights do members have to transfer their interests in an LLC?

On the other hand, under a more “corporate” model, the LLC and/or the other members may have only “rights of first refusal” (rights to match third party offers) with regard to transfers. If a consent requirement is not desirable but a right of first refusal is insufficient, members may provide each other with “co-sale rights” in addition to rights of first refusal. Co-sale rights would allow the other members to participate in a sale negotiated by the transferring member. 1 Majority members might also want the right to require minority members to participate in exit transactions. In any event, will certain types of transfers (e.g., intra-family or intra-affiliate transfers) be exempt from transfer restrictions?#N#16. Under what circumstances, if any (e.g., death, disability, expulsion, bankruptcy, termination of service or, in the case of a member that is itself an entity, change of control), will the LLC and/or the other members have the right or obligation to buy out a member? If there will be buy-out rights, how will the price be established, funded and paid?#N#17. To avoid deadlock, should there be a provision permitting a member (or group of members) to initiate a process as a result of which that member (or group of members) will either buy out, or sell out to, the other member (s)? In such a process, the determination of who will buy and who will sell is usually made by the non-initiating member (s). The price is usually determined by the initiating member (s) or by some valuation procedure.#N#18. Will all the members have the same rights to participate in buy/sell transactions (or will some members have greater or lesser rights than other members)?

What is an operating agreement for LLC?

Formal operating agreements, signed by each LLC member, that identify membership duties and procedures for governing the business can help resolve disputes without costly litigation. Consult an attorney during the drafting stages of this agreement to establish rules for admitting new members, preventing members from assigning their interest in the LLC to others, apportioning profits and entering into contracts with vendors.

Can an LLC be a single member?

Without state laws regulating the number of members needed to form an LLC, the owners are free to choose a single- or multi-member structure. Discuss the advantages and disadvantages of both with your lawyer before making any commitments. For example, being the only member might save you from disputes between members over how to run the business. However, as attorney Scott Edward Walker points out, a single-member entity might not protect you from personal liability for debts incurred by the LLC. An attorney can help you in the planning stages to establish proof that the LLC is separate from the individual who formed it.

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.

Why is contract important?

Contracts are important to businesses of all sizes and types, and checking them out with the right lawyer can make all the difference when it comes to the success of your business. This is definitely one of the very important questions to ask a lawyer when starting a business. 4.

Do lawyers save money?

The fact is, most lawyers try to help you save on the fees you’re paying them. Ask your lawyer specifically if there are ways to save money on the legal services he or she provides. If the lawyer is adamantly against offering this option, it could be a red flag.

Why is it important to have an immigration lawyer?

Immigration laws are also important to comply with, especially if you have employees who are not citizens . An experienced lawyer can help put you on the right track by educating you on the laws associated with your business. This is definitely one of the very important questions to ask a lawyer when starting a business.

What is an LLC bylaw?

LLC operating agreements and corporate bylaws are crucial. They provide guidelines that make operating your business more efficient and legit. The documents explain all about shareholder meetings, LLC ownership changes, how shares of stock are issued, and how all major decisions will be made.

Is a sole proprietorship the same as a corporation?

In most cases, as a sole proprietor, you and your business are the same person . This means its debts are your debts, and you are legally liable for them. If you choose to limit this liability, you can choose to be set up as a corporation, limited liability partnership, limited partnership, or a limited liability company.

What are trademarks?

Items such as your business name, labels, slogans, logos, and even packaging are all considered the trademarks of your company, and you can’t just assume that no one will steal them.

What are the legal ramifications of starting a business?

There are several legal ramifications of starting a business. It can lead to issues related to liability, copyright, employee rights and everything in between. So one of the first steps you should take as you work to get your business off the ground is speak with an experienced business attorney.

Who is Ben De Leon?

Ben De Leon is the President of De Leon Washburn & Ward, P.C., where he has served as general counsel to some of the fastest growing companies in Texas. As an experienced business lawyer, he recently spoke with Small Business Trends about some of the most important legal issues that new entrepreneurs should discuss when getting started.

Do you need a lawyer for a business?

Once your business starts working with vendors, suppliers, clients, or any other third parties, you’ll need written agreements in place to ensure that all parties involved know what to expect. A lawyer can help you draft specifics or at least walk you through the creation of some templates that you can use in common situations.

What is a corporate shield?

Only by establishing a corporate entity and following the necessary corporate laws and regulations do small business owners enjoy what’s commonly known as a “corporate shield” that protects their personal assets and ensures only their business assets are at play.”.

What happens if a business has an outside investor?

If your business has any outside investors, it could impact the type of corporate entity you’re able to establish for your business. Specifically, you need to be sure that the structure provides a corporate shield for your investors as well as yourself.

What is a registered agent for LLC?

A registered agent is someone who receives official or legal documents (such as subpoenas) on behalf of the LLC. Once received, the registered agent will then pass on these documents to the person in charge of the LLC. Anyone over 18 years old can be a registered agent—and there’s nothing wrong with naming yourself. Or, you can designate a company that provides registered agent services to do so. This will come at a fee, of course; pricing for registered agents may cost a few hundred dollars per year.

How to get a copy of articles of organization?

Go to your state’s Secretary of State website to get a copy of the articles of organization form. This document includes details about your proposed LLC so that you can establish it as a legally separate entity.

Why is it important to choose a business name?

Choosing a unique business name is important for both practical and branding purposes. For one, most states won’t allow two businesses to have the same name—it doesn’t matter where they’re located within the state. Some states also prohibit certain words, such as “city,” “insurance” or “bank.”

What is an operating agreement?

An operating agreement contains the details of the financial, legal and management rights of all members of the LLC. More specifically, it can include how profits will be distributed, how members leave the LLC and who contributes capital for the business. In essence, it should contain all relevant information pertaining to the operations of your LLC.

Contributions and Capital

• 1. What contributions of cash, property or services will each of the owners (who are called “members”) make to the LLC? 2. Will there be any required contributions after the initial ones (e.g., to fund working capital needs)? If so, what penalties will apply if a member fails to make a required contribution when due? 3. Under what circumstances, if...

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Distributions

Governance

Transfers of Interests; Buy/Sell

Termination/Conversion