Forming a new business is an exciting time in any entrepreneur’s life. Those hoping to set their small business up for success from the start may be interested in obtaining a business startup attorney as soon as possible. A business startup attorney that specializes in small businesses could help your business thrive from the very beginning by helping to avoid the legal issues and financial mistakes many startups make. Contact the experienced Arizona business lawyers at Harrison Law, PLLC, for a free consultation today at (480) 320-2310.
How a Business Startup Lawyer Could Help You
There are many benefits that an experienced business startup attorney can provide. When you choose a reputable legal advocate to help your business thrive, you can expect top-rated legal representation. Some of the most popular services offered by business startup lawyers include:
- Selecting a business structure
- Choosing a business name
- Handling business operations
- Helping secure business startup funding
- Tax compliance
- Contract draft and review
- Registration and licensing
- Business startup insurance
These are only a few of the ways a business startup lawyer can help small business owners succeed with fewer risks and greater rewards. Some of the other ways a business attorney can help new business owners include the following:
Selecting Your Business Structure
One of the most important decisions a business owner will make is selecting their business structure. However, choosing the right one for your specific circumstance can be challenging and legally complex.
There are several types of business structures that may be more (or less) suitable depending on the specific details of the business. Some of the different types of business structures that may work for a startup include:
- Limited liability corporation (LLC) – In a limited liability corporation, company owners are not held personally responsible for debts or taxes the business accrues.
- Corporation – Corporations are recognized as distinct entities, separate from business owners. Corporations have the same rights individuals do, including the ability to borrow and loan money, enter into contracts, and be sued. There are both C Corporations and S Corporations, and both have distinct benefits and responsibilities.
- Sole proprietorship – Sole proprietorships are unincorporated companies with a sole owner who is personally responsible for any profits and taxes the company incurs.
- Partnership – In a partnership, there are multiple parties entering into a business relationship that will share the profits and revenue based on a contractual agreement.
Choosing a disadvantageous business structure could be devastating for small business owners and startup companies. An experienced business startup attorney can help entrepreneurs assess their goals and finances to determine which business structure makes the most sense for their company.
Choosing Your Business Name
A business startup attorney can also help small business owners choose their business name. Every state has a website that determines the names of all registered businesses within state lines. Companies must determine whether their desired name is available and then register that name with the state. Before registering a business name, an experienced business lawyer can review the business name to ensure it is not a currently registered trademark. Failure to follow these steps could lead to trademark and intellectual property infringement lawsuits.
Helping You Secure Business Startup Funding
Building a startup company is nearly impossible if a business does not have adequate funding. Securing capital is critical for any new business. Small business lawyers can help startups obtain funding from a variety of sources, such as:
- Angel investors
- Seed investment
- Venture capital
- Traditional banks
- Credit lenders
- Crowdfunding
- Business owners’ friends and family
Business startup attorneys can also help business owners establish company bank accounts, obtain lines of credit, and negotiate with investors to ensure startup stakes in future revenue.
Handling Business Operations
After the business has been formed, business owners will need to start working on their business operations. This might include determining how to build a strong web presence, which products or services are going to be available, whether they are going to hire employees, and enter into legally binding business agreements and contracts.
Business startup lawyers can help entrepreneurs avoid some of the more complex legal issues involved with business operations including the following:
- Drafting and reviewing employee contracts
- Determining whether it is appropriate to hire employees or independent contractors
- Requesting an IRS Employer Identification Number (EIN)
- Handling any accusations of discrimination or harassment
- Negotiating wage disputes
- Handing any employee misclassifications
- Handling any wrongful terminations
Tax Compliance
All new businesses must adhere to state and federal tax regulations. Every startup is different, but when companies fail to remain in compliance with tax laws, they can face severe financial penalties. Business startup lawyers can ensure businesses are paying taxes on time and that mistakes are not made when a new entrepreneur files business tax returns.
Draft and Review Contracts
Business startups, as well as seasoned companies, rely on legally sound contracts. From investor and partnership agreements to employee contracts, a business startup lawyer can draft and review these critical legal documents to protect business growth and funding while avoiding disputes that could end up in court.
Registration and Licensing
Certain business structures are required to adhere to specific permitting, licensing, and registration laws both statewide and federally. Failure to comply with these requirements can result in fines and other penalties. Business startup attorneys can identify regulations, obtain required licenses, and ensure businesses are remaining in compliance with these regulations accordingly.
Business Startup Insurance
Determining which types of insurance a business startup will need can be challenging without the help of a business startup attorney. Some of the different types of business startup insurance that may be appropriate include:
- General liability insurance
- Workers’ compensation insurance
- Auto insurance
- Business interruption insurance
- Property insurance
- Umbrella insurance
- Professional liability insurance
- Business owners insurance
A dedicated business startup attorney can help small business owners determine which types of insurance coverage protections are necessary for a new company.
Contact an Experienced Business Startup Attorney Today
Entrepreneurs across Arizona can benefit from the legal guidance and support of an experienced business startup attorney. Contact the seasoned and dedicated business attorneys at Harrison Law, PLLC for an initial consultation today at (480) 320-2310. We look forward to helping you with your business goals and dreams.
© 2022 Matthew W. Harrison and Harrison Law, PLLC All Rights Reserved
This website and article have been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal or financial advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.
