Starting a business is an exciting but daunting endeavor—it requires research, dedication, and patience. Statistics have it that only one in six businesses survive the first four years of operation. So, to increase your chances of success, you need to ensure that your business is properly formed and legally compliant.
This is where Monahan Law firm can help you achieve your goals. Undoubtedly, the success of your venture hinges on having the right plan for success in place, and that includes taking advantage of our wide range of experience in business law.
If you need help getting your new business off the ground call our Phoenix business law attorneys at (623) 300-2727 to schedule a consultation.
What You Should Know About Business Formation
Business formation involves legally creating a business entity and registering it with the state in which you operate. Depending on your needs, there are several different types of entities you can choose from, including sole proprietorships, limited liability companies (LLCs), corporations, Limited liability partnerships, and limited partnerships.
This is a crucial decision, and an experienced Phoenix business formation attorney can help you decide which form of entity is most suitable for your enterprise. The attorney can also help you understand the differences between the various options, and advise on any legal implications.
Steps to Take When Creating a New Business
Once you have made the decision to form your business, the first step is to choose a name and register it with the state. Your attorney can assist you with this process, as well as make sure that the name you’ve chosen is legally available and not already trademarked by another business.
The next step is to establish the legal structure of your business and file the appropriate documents with the state. Depending on the type of business entity you choose, this may include filing articles of incorporation and obtaining a federal employer identification number. Your attorney can help you figure out the best way to structure your business, as well as handle any required documents.
Once you’ve chosen a name and established an entity, you’ll need to comply with all applicable laws and regulations. This includes obtaining any necessary business licenses and permits, as well as adhering to any industry-specific rules. With the guidance of an attorney, you stay on top of the requirements and ensure that your business is in compliance.
Furthermore, your Phoenix business formation attorney can help you create a strong foundation for your venture that will serve to protect you and your partners from liability. This would include drafting legal documents, as well as establishing a business plan that sets out goals and objectives.
Finally, you’ll need to determine how to fund your business. This may include obtaining financing from a bank or other financial institution, securing investments from friends and family, or applying for grants or other types of financing. Your Phoenix business formation attorney can help you explore all of your options and provide advice on the best approach for your particular situation.
Which Type of Business Entity Should You Choose?
Choosing the type of business entity is an important factor when it comes to forming a business. As mentioned, there are various types available, including sole proprietorships, LLCs, corporations, Limited liability partnerships, and limited partnerships. Each type of entity has its own advantages and disadvantages, so it’s important to understand them before making a decision.
Generally speaking, sole proprietorships offer the least amount of protection for owners as they are not separate entities and do not offer personal liability protection. An LLC, on the other hand, provides personal liability protection as well as tax benefits.
Learn More: Questions to Ask a Lawyer When Starting a New Business
A corporation is a more complex entity that offers multiple levels of protection and can be beneficial for businesses seeking to raise capital. Lastly, limited partnerships provide limited liability protection and are typically used for real estate investments.
Ultimately, the type of business entity you choose should depend on the specific needs of your venture. A business lawyer can help you determine which option is most suitable for you and guide you through the process of establishing it.
Why Hire a Corporate Formation Attorney?
There are several reasons why you should consider hiring a Phoenix business formation attorney.
Choice of Business Structure
An experienced attorney can provide invaluable guidance on which entity is best for your particular venture, as well as on the different legal implications associated with each form. They can also help you understand how to properly structure your business, and handle any legal matter that concerns you as a business owner.
File the Necessary Paperwork
Depending on the type of business you choose to form, an experienced business attorney can help you draft the necessary paperwork and register your business with the state.
Understand Taxes
Taxes are an essential part of business ownership. Your attorney can provide guidance on how to structure your business in order to minimize taxes and maximize profits.
Draft an Operating Agreement
A business formation attorney can help you create an operating agreement (e.g., a partnership agreement) that outlines the rights and responsibilities of each party involved in the business. This agreement will outline the rights and responsibilities of each party involved in the business, and it is essential to ensure that all parties understand their roles. This document can also help protect against potential disputes and other issues that could arise in the future.
Secure Funding
An experienced lawyer with a knack for business law can also offer counsel on how to best secure funding for your business. He or she may provide advice on different types of funding and explain the pros and cons of each.
Prepare Contracts
Your business formation attorney can help you create contracts with vendors, customers, and other parties, i.e., commercial agreements. This helps to establish clear expectations and protect your interests.
Seek Legal Advice
As your business grows, it is important to stay up-to-date on legal requirements and changes that may affect your organization. Your business formation attorney can provide ongoing advice and counsel relating to any legal issue that may arise.
Legal Representation
In the event that a dispute arises, your attorney can represent you in legal proceedings such as contract disputes, partnership disputes, trade name issues, etc. This help to protect your interests and ensure that any potential disputes are resolved in a timely manner.
What Consequences Could We Face If We Don't Retain a Business Formation Lawyer?
If you choose not to hire a Phoenix business formation attorney, the process of forming and running a business can be quite difficult. Without legal counsel, you may be at risk of making mistakes that could cost your business in the long run. Furthermore, without a professional helping you make legally sound decisions, you may be at a higher risk of exposing yourself and your business to legal liabilities.
Ultimately, obtaining the best legal services from a Phoenix business formation firm can help ensure that your business is properly formed and in compliance with all applicable regulations. We can provide guidance on which entity is best for your venture and ensure that your venture is properly set up for success. Book a consultation with us at (623) 300-2727 and let's get started on protecting your business and taking it to the next level.