Starting a new business can be daunting. The list of things to do is endless. In order to plan a business, you must first determine what you will sell. Is it a product? A solution to a problem? Something different? Once you have your million-dollar idea, you need to put it into action. In this process, you’ll need to determine the type of business entity to form, where the business will be located, how many employees the business will have, and how the employees will be paid.
And then there are the unknowns: Will the business actually be profitable? What happens if the business fails? If it fails, how will you recover? Getting to this article means you’re probably in the process of planning your business. You probably want to know the answers to all of these questions. If that is the case, congratulations! You’re in the right place! Let’s get started.
Business Planning Elements to Consider
When planning your business or opening your doors to the public, there are a few key elements you should keep in mind. By considering these things, you will be able to protect yourself as a business owner and be in the best position when starting your business. Among these elements are:
- What type of business entity should I form? If you want to protect yourself from personal liability, you should register your business. The formation process allows you to choose from a variety of business entities. The options can seem overwhelming since they all have their own pros and cons based on your goals and your tax strategies. Having a business attorney sit down with you and discuss your business plan can help you pick the best entity for your needs.
- What will be my internal business structure? Your company’s internal business structure involves both organization and management. This will be very straightforward if you are the sole owner of your business. Nonetheless, if you plan to have multiple members or co-owners in your business, you will need to ensure everyone understands things like the general structure of the business, ownership percentages, how profits and losses will be allocated, and how major business decisions will be made. Forming a corporation further complicates the process because officers and directors must be identified. Creating an LLC requires an Operating Agreement, which specifies the company’s internal business structure. Similarly, if you choose to form a for-profit corporation, you will need to create your governing document in the form of Corporate Bylaws, as well as stock certificates. In hiring an attorney to draft your documents, you can ensure the documents reflect your business goals by assessing your needs based on those goals.
- How will your business be taxed? In the process of forming a business, it is crucial to file all necessary documents with the state and the IRS. In order to ensure that the state and IRS recognize your business correctly, these documents must be accurate. Additionally, all types of entities must register with the IRS for an Employee Identification Number (EIN). Hiring an attorney to assist you will allow you to focus on your other responsibilities as a business owner while ensuring all of these documents are filed properly.
Why Your Business Needs an Attorney
- Contracts. Regardless of the industry you work in, contracts are likely to be a fundamental part of your business. Having an attorney help you review, draft, or negotiate your contracts will ensure that any agreement you enter into is fair and protects your interests, should a dispute arise.
- Buying or Selling Business Assets. If you are in the process of either acquiring or selling business assets, you may want to have an attorney on your team to assist in the legal aspects of the sale.
- Other Disputes that May Result in Litigation. There are countless other disputes that may arise throughout the life of your business that are unpredictable, complicated, and can be a major source of stress as a business owner. However, having an attorney that you can rely on to help when conflicts arise will allow you to focus on your business rather than the legal problems fit for a law firm to handle.
What is the Benefit of Hiring a Law Firm Rather than a Generic, Online Legal Service?
While companies like Legal Zoom and BizFilings assist in the formation of small businesses and different legal entities, there are many benefits of having an attorney on your team rather than using an online legal service. Though these companies assist in creating the legal documents necessary to form your business, the services are far less helpful in determining which entity is the best for your needs as a business owner.
By hiring an attorney or a law firm for business services, legal advice will be available when you need it the most. Additionally, you will have a point of contact that you can reach out to when necessary. Say an employee is injured in the workplace or a customer threatens you with a lawsuit. Having a trusted attorney that you can call when issues arise is essential in mitigating problems and finding the fastest solution. After all, the goal as a business owner is to maximize profits while limiting liabilities. Quick access to a lawyer at a law firm will help to make this possible.
How the Bowen Law Group can Help Your Business
The Bowen Law Group specializes in business formation in many different industries. As with any business decision, when you are determining who to hire as your attorney for business formation or other services, there are some important factors to consider, such as:
- Industries that the firm commonly works with
- Whether the firm charges hourly or provides specific business services for a flat fee
- The experience the firm has in business litigation for corporations and small businesses
The Bowen Law Group focuses their business law practice in many different areas, including:
- Flat fee business formation for Single-Member LLCs, Multi-Member LLCs, and For-Profit Corporations.
- Contract actions
- Small business formation and operations
- Partnership and joint venture disputes
- Exclusivity and non-compete agreements
- Business torts
- Emergency and equitable relief
- Intellectual property
- Legal compliance
If you are forming a business, currently need legal business advice, or are in a legal business dispute, schedule your free consultation with The Bowen Law Group today to see how our firm can help you maximize your potential as a business.
The attorneys at The Bowen Law Group believe that superior legal service should be accessible and affordable. As a business owner, you shouldn’t have to pay a ton of money to a company like LegalZoom just to have a “team” of robots draft the governing documents and business filings. Instead, work with The Bowen Law Group today to get real, solid legal advice.