Why You Need A Business Startup Attorney
Starting a business is an exciting and challenging time for entrepreneurs. At Newburn Law, we enjoy working with bright and motivated business owners who are eager to turn their ideas into reality. At the same time, the early stages of a new business can greatly impact the future of the business, so it is important to get it right. A business startup attorney can do more for you than just fill out the paperwork. At Newburn Law, our attorneys work closely with our clients' startup businesses to help them make decisions that will set them on the path to success. Call us today at 303-847-4987 to schedule a meeting with one of our business attorneys. We want to learn more about your objectives and needs so we can guide you through this exciting and daunting time.
Choosing a Business Entity
As an entrepreneur, you have probably spent countless hours brainstorming your business with your associates. How much will it cost to startup? How much revenue can we make? How can we innovate an existing product or service to create value? Your creativity is essential to making the business a success, but sometimes that means other decisions fall to the wayside, which is where a startup attorney may step in. A business lawyer may help you consider how best to structure your business. Some questions you may want to consider include:
- How will we raise capital?
- Will the owners be personally liable for the company's debts?
- How do we want to pay taxes?
- What happens if one of our partners wants to leave the company?
- How will we divide profits and losses?
- Which state will you incorporate in?
An experienced business lawyer will be able to translate your needs into the best business structure to suit your company. Whether you end up forming a partnership, a corporation, a limited liability company, or some other business entity, our lawyers can help make sure your business is properly registered and all of the members of your business understand their rights and responsibilities.
Another reason why you need a business startup attorney is to protect your intellectual property. For many startups, intellectual property is the crux of their business. If you have developed a new technology or product that will serve as the foundation of your company, it is important to protect it upfront. A business lawyer may be able to support you through the process of filing applications for patents and trademarks.
Acquiring Permits and Licenses
In addition to the documentation needed to incorporate or register your business with the state, your business will likely need to apply for various permits to operate, either at the local, state, or federal level. Almost every industry requires some type of regulatory permit or license. Complying with regulatory requirements can be quite overwhelming for a young business, so this is one reason why you need a startup business attorney to minimize your risk from the outset.
Taxes and Insurance
Starting a business is costly, and taxes are one major expense to consider upfront. Depending on the type of business you operate, tax consequences can range drastically. You may be a sole proprietor who simply declares the company's profits on their individual income tax return, or you may be considering starting a corporation, which pays taxes at the corporate level. Limited liability companies (LLCs) offer some flexibility in terms of how the members can pay taxes; they can either pay taxes at the LLC level, or they can elect to be taxed as an S-corp, which offers pass-through taxation at the individual member level. These tax considerations are often at the back of an entrepreneur's mind when they are considering the prospect of starting a business, but a business startup attorney can help ensure your business is minimizing its tax liabilities.
Insurance is also an important consideration for a startup company. There are numerous regulations requiring companies to carry certain types of liability insurance, but beyond the minimal legal requirements, you want to make sure you have sufficient coverage to protect your business against risks. At its early stages, a startup business may be operating as a general partnership or sole proprietorship. Although these business forms offer a degree of flexibility and independence, business owners in these structures have unlimited liability for the business's debts and judgments. For example, if a general partnership is sued, all of the partners may be personally liable for paying a judgment on behalf of the company. One reason why you need a startup business lawyer is to help you manage risk and identify the most cost-effective insurance solution so you can operate your business with peace of mind.
For many startups, there are only a handful of employees at the beginning, but if you have a goal of growing your business and hiring more employees, a lawyer may help you structure an employee handbook and establish consistent policies and procedures. Federal law regulates workers' compensation, discrimination, harassment, disability accommodations, wage and hour, collective bargaining, retirement benefits, payroll taxes, and many others. There are also state and local employment laws to be aware of. Preparing employee policies early on can help minimize the risk of employment litigation, which can be a very costly liability.
Consider Visiting With Our Business Startup Attorneys
Whether you want to open a small family business or build a large national corporation, our attorneys can help answer your legal questions about your business startup. At Newburn Law, we like to work as a strategic partner with our startup clients, not only to answer their immediate questions but also to envision the long-term needs and objectives of the company. Of all the reasons why you need a business startup attorney, the most important reason is so you can focus on creating and innovating your business, while we focus on setting up your company for legal and financial success. With years of corporate law and negotiation experience, our attorneys have been exposed to every aspect of running a business, both young, small businesses and large, mature corporations. Contact Newburn Law, today at 303-847-4987 to schedule a meeting with one of our business lawyers.