One of the common questions that new business owners have is whether or not they need an attorney for their startup company. If so, when? Can they try to forge ahead without one in hopes of saving some money or is that leaving their fledgling company too vulnerable? This question is best answered in a meeting with a qualified business law attorney in your area, but there are some key components that you can consider before then.
What Are Your Business Needs?
The type of business that you plan on having will play a primary role in determining whether or not you will need an attorney. The simpler your business model is, the less likely it is that you will absolutely require permanent legal counsel.
- Sole Proprietorship – This is the simplest of all business formats as you are not required to register your new business with the state. In fact other than a basic business license no other paperwork is really required for this. You will most likely not need t hire an attorney if this is the path you plan on taking.
- Partnerships and LLCs – Both of these business formats are required to be registered with the state. They both also require the preparation of documents like a partnership agreement or an LLC operating agreement. This paperwork is far more formidable in both scope and volume. For either of these business paths, it is strongly recommended that you seek legal counsel in order to avoid any mistakes that may come back to haunt you later on down the road.
- Corporations – This business format has, by far, the most complicated ownership structure. Not only is it required by law to be registered with the state, but it also requires the preparation of bylaws and many other documents without which the business will not be permitted to move ahead. If all of this sounds frightfully complicated to you, that’s because it is. You should hire an attorney to handle these matters for your new company right away.
Other Reasons You Might Need an Attorney
- The navigation and explanation of certain types of forms and documents, such as incorporation documents, that must be filed for your business to be legitimate.
- If you want someone to double check your work to make sure that everything is being done properly. One misfiled form could easily create legal troubles for your new business later on.
- If you do not wish to expend the time and energy it will take for you to learn the legal processes for a new business and just want someone knowledgeable to handle all the paperwork.
- If you would like support with specific tasks that are proving to be a bit more complicated than you are comfortable handling on your own, such as trademarking your company name and reviewing lease documents.
California Business Attorney
Each business is different, run by different people and with different goals in mind. There is no one size fits all answer to who will need an attorney and when, or for who will simply find it more comforting to know they have a professional looking out for them should they make an honest mistake.
A licensed startup attorney will have far more information and can you help make an informed decision when it comes to the best thing to do with your new business. For a free consultation regarding your business start-up, contact the Leiva Law Firm by calling us at (818) 703-1777 and speaking with one of our business start-up attorneys today.