Entrepreneurs by their very nature like to do many things on their own, but at times, you need to reach out for expert-level help. In particular, you may want to contact a business attorney when starting a new business. Here are the key ways they can help you.
To guide you toward the right business entity.
The business entity you select has a direct impact on your tax and legal liability. If you set up a sole proprietorship, you and the business are essentially the same entity. You are personally responsible for the business's legal and financial liabilities.
Other entities such as corporations exist separately from you as a person. These businesses are their own entities.
To ensure you have the right business licenses and registrations.
There is a wide range of regulations you need to follow when you set up a business. They vary drastically depending on your industry and the rules in your area. A business attorney is familiar with the relevant rules and laws in your area.
They can guide you toward the right licenses and registrations for your unique situation. Don't rely on web searches for this aspect of starting a business. The reality of running a legal business is very complicated and it's best to get advice.
To answer your questions about becoming an employer.
As an employer, you have a legal responsibility to your employees. You need to ensure that you classify them correctly as employees or freelancers. Then, you need to ensure that you follow labor laws and take care of payroll taxes correctly.
Your business attorney can answer your questions. They can help you apply for an employer identification number (EIN), and they can help you draft employment contracts.
To help you understand your tax obligations.
Your payroll taxes are just the start. When you run a business, you may also have to deal with self-employment tax or corporate income tax. Then, depending on the products or services you sell, you may also have to deal with sales or excise taxes.
Again, a business lawyer can be invaluable at guiding you in the right direction and ensuring you don't miss anything. They won't file your returns, but they will let you know who to talk to and what to do.
To draft internal organizational documents.
Finally, your business lawyer can help you draft organizational documents. This can include the corporate documents you need to register as an LLC or corporation with your secretary of state. It can include partnership documents that outline expectations between you and your partners. Again, your attorney can let you know what you need based on your goals.
