If you’re about to start a new business, you are probably feeling financial stress and pinching every penny. It takes money to get a business off the ground, and that requires some hard choices about what are considered necessities vs. luxuries.
You might think that working with business law attorney is a luxury – and one that you can’t afford. But working with the right attorney when starting your business can save you both time and money. It may also help you prevent mistakes that could be costly later on.
Business structure, taxes and liability protection
A good attorney can help you choose the most advantageous structure for your business. Choices include: sole proprietorships, partnerships, limited liability companies, S-corporations and C-corporations. Sole proprietorships and partnerships are relatively quick and easy to set up, but they contain almost no personal liability protections for you or a business partner. And because business taxes are paid through a personal tax return, it is more difficult to separate business and personal finances.
LLCs, on the other hand, take a bit more work to set up, but they shield the individual owners against assuming too much personal liability on behalf of the business. And although the IRS treats LLCs like sole proprietorships when there is only one owner, LLCs with more than one owner can opt to be taxed like a corporation.
Permits, registering, licensing and compliance
There are many forms you need to fill out and hoops you need to jump through simply to have your business recognized as legitimate and legal. This is an inconvenience or a headache, at best, and can be a costly nightmare at worst. Thankfully, a good attorney can help you find, fill out and submit all necessary paperwork and obtain permits, licenses and more. And when you know your business is in strict compliance with local, state and federal laws, you can focus on the more rewarding aspects of your new enterprise.
At Retz & Aldover LLP, we are proud to help entrepreneurs turn their ideas into a reality, and we always serve clients while being mindful of the financial considerations a new business owner is facing. To learn more about how we can help you get started, visit our business formation page.