Becoming an entrepreneur is exciting. To own one’s own successful business and be self-sufficient is the American dream. However, setting up a new business to begin operations can be stressful if a first-time business owner does not have experienced advisors. There are likely several matters that a new entrepreneur may not even know need to be addressed.
When making financial business decisions, and often taking financial risks in the event of a new business start-up, it is a smart move to retain the services of an experienced business attorney for several reasons.
First, there will need to be contracts and plenty of other required paperwork. An attorney will draft these documents for your company. This allows peace of mind in knowing that you will be in compliance with all local and state rules and regulations. Also, it will ensure you have legal protections in place in the event of certain potential events.
Second, an attorney can advise of the most advantageous entity formation for your business. He or she will likely be familiar with current tax laws and may help you carry as little tax liability as possible. Most businesses do not make a large profit in their first year of operation. Ending it by being hit with a huge tax bill would not be ideal. In some cases, it could even make or break whether the business could afford to continue operations.
Third, in any business, questions are going to arise as you go. Keeping an experienced business attorney on retainer to reach out to at any given time is priceless. Think of it as a smart friend you can call for advice when you are in a bind.
In a business scenario, a wrong decision can end in devastation by way of lawsuits or public backlash. No business owner wants to deal with those stressful situations. Take the time to find a legal advisor who is the right fit for your business. Find someone who will answer the phone. Most importantly, find someone who is familiar with the business space you are entering. It will make all the difference in the long run.