If you've decided to form a limited liability corporation, or LLC, for your small business, don't start without an attorney. There are a lot of complex issues to navigate when forming an LLC. Unfortunately, if you're not familiar with corporate law, you might miss some of those issues. If you're like many small business owners, you think only major corporations can benefit from a corporate lawyer, but that's not the case. Here are just four of the many problems a corporate lawyer can help you avoid when you form your LLC.
If you're going to be forming an LLC, you may need to sign quite a few contracts. You may even need to create your own contracts. Most of the contracts you encounter will contain legal language that can be difficult to understand. Unfortunately, if you don't understand what's contained in the contracts, you may find yourself facing complex legal problems. The best way to avoid contract issues with your new LLC is to have a corporate lawyer take a look at all your legal documents. They'll identify legal language that is detrimental to your business.
Intellectual Property Issues
If your LLC is going to be dealing with intellectual property, such as design formation and patents or copyrights, you need to consult with a corporate lawyer as soon as possible. Issues surrounding intellectual property rights require legal protection, especially where issues of IP theft is concerned.
If you'll be hiring employees as soon as you form your LLC, sit down with an attorney before you accept your first application. You'll need to do much more than go over resumes once you start hiring employees. To avoid legal problems, you'll need to make sure that your LLC is in compliance with all state and federal labor laws, maintains proper employee safety standards, and avoids issues relating to discrimination in the workplace. Working with a corporate lawyer will ensure that you avoid employment issues that can bring your business to a grinding halt.
Potential Tax Issues
Finally, if you're going from a sole proprietorship to LLC, you want to make sure that you avoid all potential tax issues. This is particularly true if you consider yourself a freelancer or independent contractor. Many new state laws are creating tax headaches for freelancers and independent contractors. A corporate lawyer, like those at Carter & West Law, will help you avoid potential tax problems as they relate to your particular situation.