Are you an aspiring entrepreneur who just started your own business? The business landscape has shifted and there has been a boom in the number of startups in the United States. When forming a business, there are several different structures to consider, including a limited liability company (LLC). Hiring the services of an experienced business lawyer allows business owners to make the best decision for legal protection and profit. Let’s explore the role of an attorney when starting a business and forming an LLC., and the key talking points to cover with your business lawyer.
What Is An LLC? (Limited Liability Company)
An LLC is a legal entity and business structure in the United States. It combines the best parts of various other business structures, such as corporations, sole proprietorships, and partnerships. Like a corporation, the LLC affords you protection of your personal assets if your business encounters financial or liability problems.
Forming an LLC is one of the easier processes to perform, but it is still recommended to get professional help. It requires articles of organization to be filed with the state, and each state has its own specific requirements. The LLC
When Is an LLC Best?
How do you decide between forming an LLC or a corporation, partnership, or another type of business structure?
An LLC is an excellent choice for small businesses that want to limit personal liability for business debts.
An LLC offers several benefits, making it a top choice for small businesses. Some of the most stand-out benefits include;
- Flexible management structure
- Tax advantages, such as pass-through taxation
- Simple and hassle-free formation
- Personal liability protection for the owners
- Boost confidence in customer
Questions to Ask Your LLC Attorney
Are you ready to take the next step and form an LLC? Before you sign the dotted line, it’s important to ask your attorney a few questions to make sure that you’ve covered all of your bases.
What Are the State Requirements for Starting An LLC?
While you can start your LLC in any state, each state has its own set of requirements. Each requires that articles of organization are filed with the appropriate agency. As each state’s requirements differ slightly, a legal expert can offer the guidance that’s needed.
What Are the Alternatives To An LLC?
If you want to be confident in your decision to form an LLC, then it’s important to understand the pros and cons, as well as what your other options include. Getting to grips with the best structure for your business is one of the benefits of hiring a business attorney.
How Can I Minimize Financial Risks?
One of the perks of an LLC is the tax benefit and personal liability protection that the structure offers, but what are the risks? An experienced LLC attorney will be able to advise on the financial risks of starting a business and how to protect your assets.
How Should I Establish Ownership Responsibility?
An LLC offers a very flexible ownership structure, which can be confusing to some. The format of ownership will determine the pass-through taxation benefits, the profit-sharing, and more. It’s important to understand these responsibilities in the planning phase.
Should I Get An Attorney For Drafting Internal Bylaws?
A business attorney is a great asset in ironing out internal legal agreements. Serving as a mediator and knowledgeable expert, it’s worth asking a legal expert to guide the process of outlining policies and responsibilities when forming an LLC (or any other type of business). If there is more than one member of the LLC, you will need an Operating agreement, which, among other things, sets forth the rights and duties of the members, what happens if one of the members dies or becomes disabled, what happens if a member wants to retire or sell his or her membership share, or if the current members wish to take in another member.
What Are the Considerations for an LLC?
While there are many benefits of forming an LLC, there are also a couple of drawbacks to consider. For some, these factors won’t be an issue, but they still need consideration.
The first is the cost of forming and operating an LLC, which can be more than a proprietor or partnership. The second is that LLCs are not usually the structure of choice for investors. If you plan to seek investment, then an LLC may not be your best option. Your business lawyer will be able to discuss these considerations in depth.
In the Right Hands
Now that you know what to ask your LLC attorney, you can make an appointment! At Handin Law, we offer legal services that you can count on. With more than 50 years of experience in New York and Florida, we offer exceptional legal representation to every one of our valued clients.