Before starting a business, an
entrepreneur must know which legalities and formalities to take care of to be trouble-free in the future. Unlike popular belief, the requirements are easier to find, and with some research, the entrepreneur will know what is required to start the business of his choice. For example, running an eatery may require approval from the local food authorities. Entrepreneurs, however, worry about the
legalities and wonder if they need to retain an attorney. But they also want to save costs and think of hiring one later, if required. This article helps
entrepreneurs identify whether they need a lawyer to start a business or manage without one!
Things that Do Not Require a Lawyer
An entrepreneur must avoid spending money on things they can do without an
attorney. Therefore, knowing tasks that might arise before starting a business without a lawyer. Listed below are activities that an
entrepreneur can do himself!
Finding an Available Business Name
As a rule, two
businesses cannot have the same name! And why would an entrepreneur want to confuse his customers by keeping a business name already occupied? Therefore, a startup needs to check whether the desired name is
available for use or not. However, it does not require a lawyer to do the research. Most states have an easy-to-use database on their websites, including all the
registered business names. It also includes instructions for different businesses and industries to help register one’s business name. Once decided, the name needs to be verified with Trademark Electronic Business Centre to ensure that the name is not reserved. It would be wise to check if a relevant domain is available for the
company’s website.
Getting an Employer Identification Number
Entrepreneurs are often worried about getting an
Employment Identification Number. However, it is one of the simplest tasks. The Internal Revenue Service issues the number all businesses use, including a sole proprietorship, non-profit organizations, partnerships, corporations, and others. The website for IRS provides all the
details of getting an Employee Identification Number. The process is simple and requires the online submission of documents that the entrepreneur is likely to have if the
business is ready to operate. Therefore, a lawyer is not required. However, it is necessary to know that an Employee Identification Number does not require
sole proprietorships with no excise taxes and pension plans.
When You Must Hire a Lawyer
Some issues can be taken care of without a lawyer, but a
lawyer must tack some. As an entrepreneur, one must know when and when not to hire a lawyer. Here are some of the things that need professional help!
Registering a Partnership or a Corporation
Businesses differ from one another; therefore, their requirements too. A partnership is required to register with the state with
formal documentation. One of the necessary documents for a partnership is the LLC Operating Agreement. Corporations must register with the state and develop proper
bylaws.
Therefore, an attorney is a must! An S-Corporation must register with the Internal Revenue, and starting one requires help from an attorney. Although the state facilitates entrepreneurs through online registration, an attorney will make life easier for you. Hiring an attorney will ensure that all
documents are complete and submitted to the state.
Preparing business contracts is tricky and requires a
lawyer’s assistance to allow a profitable arrangement for both parties. A business undergoes additional agreements between partners, suppliers, stakeholders, customers, and more. Other companies can exploit your business with a tricky contract that you may not understand clearly. For example, a supplier can trick a business into paying for supplies damaged during the delivery, although the
supplier was responsible for the freight. Let the attorney do the job before the company gets a grip on legal matters.
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