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The Role of a Business Attorney in Business Formation

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We often underestimate the importance of business law in our community. The value of having a problem solver who is skilled in handling legal aspects surrounding businesses always overweighs any reason or doubt.

Starting a business can be daunting, especially if you’ve got no one to guide you around legal matters. After all, it’s essential to understand the laws surrounding your business and what you need to do in the event litigation is brought against you. Since all companies are different, you may want to seek the help of an experienced lawyer to find the answers to your questions. 

So, if you are on the fence regarding whether or not to bring in a lawyer, you should know that it is in your best interest to have one in the first place. A Clearwater business litigation lawyer will not only help your organization with incorporation; he or she will also make taxes less complicated. A good lawyer will also protect your business from litigation. 

Here are various ways that a business lawyer can help:

Business formation

Setting up a business without following proper procedures and filing the correct paperwork leaves you as the business owner at severe risk of being served a big plate of lawsuits. Not only will having a skilled business attorney help you avoid such lawsuits but will also advise you on the perfect business model which will meet your demands and preferences. Business attorneys are also vital to help you walk through the process and ensure you comply with the rules and regulations.

Forming a corporation

There are plenty of reasons why this is the most common business model in the US. First, it protects the business owners from personal liability and at the same time, can fish in investors by dispensing stock. Having an experienced business attorney will guide you through the corporation formation process by setting up records book, help you create corporate bylaws also help you file annual reports, which is essential since it keeps an active status with banks and creditors.

Sole proprietorship

This is the easiest business model to form. The business owner is not required to present official state filing; all the attorneys have to do is to assist you in acquiring an occupational license. Also, Clearwater business attorneys will ensure you are aware that as a sole proprietorship, you are liable for both profits and losses since there isn’t a differentiation between your chattels and those of the company’s’.

Limited partnership

This form of business model requires at least more than two owners, whereby it should have at least one limited partner and at least one general partner. Clearwater business attorneys help you understand that the general partners are at risk of being held responsible for debts or any other form of liability. As for the limited partners, they will not incur any losses on the condition that they didn’t play any role in active business management. Business attorneys also assist the business owner group in filing for a certificate with the government.