Starting a small company can be a daunting task. There are so many things to prepare for that it is easy to feel discouraged before the business even opens its doors. No matter how small your startup is, having a lawyer by your side is a crucial step. An attorney will help you lay out a business plan, brainstorm creative investment strategies, and ultimately assist with reaching your goals; while also following state laws.
When starting a business, there are a few things to consider. First, how do you want to form your company? Is it a general partnership between you and other people? Is it a not-for profit corporation? Do you want to form a Limited Liability Company (LLC) or an S Corporation? All of these various ways to form a company will have different tax implications and government regulations. After you decide howyour business will be formed, you will need to draw up bylaws (the agreement that will control how you run your company), plan how to distribute profits or losses, and figure out the day-to day-business of your company. Once your company is up and running, negotiating contracts with customers and or suppliers/vendors, negotiating leases and negotiating licensing is likely to be a rather frequent occurrence.
One of the tasks of a lawyer who is representing a startup company is to make sure the company is in compliance with state laws. When forming a company, the last thing you want to do is violate laws that you are not even aware you are violating. Additionally, you will want to be sure to conduct business in a way that doesn’t create unnecessary tax liability, and ensure that the correct taxes are paid. Next, a lawyer will assist in taking reasonable steps to make sure that you are limiting your risk with the public, including customers, other businesses, suppliers, and employees.
Having an attorney on your journey to begin a new company is a vital step to ensure that you are doing everything in accordance with statutory law. Additionally, an attorney will help you understand the common mistakes that startup companies often make and how to avoid them. At Knight, Morris & Reddick Law Group, we understand that starting a new business is a stressful endeavor. With the appropriate planning and attorneys on your team, the transition can go smoothly. If you are starting a new company, or even thinking about starting one, give the attorneys at Knight, Morris & Reddick Law Group a call at 312.574.0181, email us at firstname.lastname@example.org, or visit us at kmrlawgroup.com to see how we can meet your legal needs.