Politics and Business
Do You Need To Hire A Lawyer To Become An LLC?
Making the change from freelancer to establishing your own Limited Liability Company (LLC) carries a number of benefits. The primary benefit is that it limits your liability. You won’t be held responsible for debts and you won’t be personally accountable during lawsuits against the business, although there are some exceptions to this rule.
There are pitfalls to forming an LLC, as well. You will be required to take on a more formal managerial structure, and there are a lot more regulations that must be met. It is possible to complete all the paperwork, and ensure that you meet regulatory requirements yourself, but sometimes it is better to get a lawyer when filing. Very few people have specific experience of setting up an LLC, but your lawyer will have, so they will understand the potential problems and challenges that you face.
The LLC Entity
One of the reasons that limited liability companies have become so popular is because they are relatively easy to establish. This is especially true if you are going to manage the business on your own, will have no outside investment, and will not be employing any other team members.
In a lot of cases, and especially for individuals going into business on their own, an LLC is the best and simplest entity. They are flexible and do allow the organization to be run by a single person. Alternatively, you can include additional partners when filing. If you intend to take the company public in the future, or you have outside investment that wants a stake in your business, then a lawyer will help determine whether an LLC really is the best option, or whether you might be better served by a different type of business.
There are a lot of legal documents and forms involved when completing filings. Although the forms are designed to be as simple as possible, they can take time and a degree of understanding to complete successfully. An experienced lawyer will have the expertise to deal with this, which means that you can concentrate your time and effort on finding new customers, sourcing the best business premises, and fulfilling contracts.
Changing Regulatory Requirements
Legal requirements change and evolve regularly. What’s more, different states have different requirements, so even if you have established an LLC before, you might not have up-to-date or accurate information this time around. A lawyer that specializes in business filings knows the latest regulations and will ensure that your paperwork is completed and submitted properly.
You can also enlist your lawyer to assist with other essential services. For example, they can draw up legally binding contracts to issue to suppliers and customers. They can conduct a business name search and seek trademark protection for your company.
If you intend to take on any employees at the start of your business, your lawyer will ensure that you meet federal and state employment laws and ensure that you comply with regulations in this area, too. They can also draw up company and employee handbooks and employment contracts to ensure that you can legally employ others.