Before starting a business, an entrepreneur must know which legalities and formalities to take care of, to be trouble-free in the future. Unlike popular belief, the requirements are easier to find and with some research, the entrepreneur will know what is required to start the business of his choice. For example, running an eatery may require approval from the local food authorities. Entrepreneurs, however, worry about the legalities and wonder if an attorney needs to be hired. But, they also want to save costs and think of hiring one later, if needed. This article helps entrepreneurs in identifying whether they require a lawyer to start a business or they can manage without one!
Things that Do Not Require a Lawyer
An entrepreneur must avoid spending money on things that can be done otherwise. Therefore, knowing tasks that can be handled without a lawyer is important. Listed below are activities that an entrepreneur can do himself!
Finding an Available Business Name
As a general rule, two businesses cannot have the same name! And why would an entrepreneur want to confuse his customers by keeping a business name that is already occupied? Therefore, a startup needs to check whether the desired name is available for use or not. However, it does not require a lawyer to do the research. Most states have an easy-to-use database on their websites which includes all the registered business names. It also includes instructions for different businesses and industries to help register one’s business name. Once decided, the name needs to be verified with Trademark Electronic Business Center to ensure that the name is not reserved. It would be smart to check if a relevant domain is available for the company’s website.
Getting an Employer Identification Number
Entrepreneurs are often worried about getting an Employment Identification Number, however, it is one of the simplest tasks. The number is issued by the Internal Revenue Service and is used by all businesses including a sole proprietorship, non-profit organizations, partnerships, corporations, and others. The website for IRS provides all the details of getting an Employee Identification Number. The process is simple and requires online submission of some documents that the entrepreneur is likely to have if the business is ready to operate. Therefore, a lawyer is not required. However, it is important to know that an Employee Identification Number is not required for sole proprietorship’s with no excise taxes and pension plans.
When You Must Hire a Lawyer
Some issues can be taken care of without a lawyer, but some must be tacked by a lawyer. As an entrepreneur, one must know when and when not to hire a lawyer. Here are some of the things need professional help!
Registering a Partnership or a Corporation
Businesses differ from one another, therefore, their requirements too. A partnership is required to register with the state with formal documentation. One of the documents that are necessary for a partnership is the LLC Operating Agreement. It is mandatory for corporations to register with the state and develop proper bylaws. Therefore, an attorney is a must! An S-Corporation is registered with the Internal Revenue and starting one requires help from an attorney. Although the state facilitates entrepreneurs through online registration, an attorney will make life easier for you. Hiring an attorney will make sure that all documents are complete and submitted to the state.
Preparing business contracts are tricky and require assistance from a lawyer to allow a profitable contract for both the parties. A business undergoes different contracts such as contracts between partners, with suppliers, stakeholders, customers, and more. Other businesses can exploit your business with a tricky contract that you may not have an understanding of. For example, a supplier can trick a business into paying for supplies that were damaged during the delivery, although the supplier was responsible for the freight. Before the business gets a grip on the legal matters, let the attorney do the job.
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