Do You Need an Attorney to Start a New Business?

If you are starting a new business, you may be inclined to try to cut some time and costs, and do it on your own. While on the surface that may seem appealing, it is ultimately not a very good idea.

Starting it Online

Legally, you can start a business on your own, without an attorney. The state even makes that relatively easy for you, with very user-friendly, “do it yourself” templates that are given to you online when you register.

But just because you can do something (like start a business without an attorney) doesn’t mean that you should.

Forming a Business or Not?

The first question that an attorney can tell you is whether or not you even need to or should form a legal business entity with the state.

Many people in smaller or startup ventures opt to start off as a sole proprietorship, unregistered with the state. While that can have many disadvantages, you may want to speak to an attorney to consider whether that’s the right way to go for your particular business venture or not.

What Kind of Entity?

If you do decide to incorporate, the next question becomes what kind of business to incorporate as. The main types are C corporations, LLCs, or partnerships, but there are also many other kinds of corporate organizations with their own unique nuances that may be right for you, such as LLLPs, or family partnerships, or professional liability corporations.

Each of these has their own unique strengths and weaknesses as far as tax advantages, liability advantages, and management structures.

Governing Documents

Even if you have decided on what kind of business entity that you will form, you have the issue of company governing documents—for example, management agreements, partnership agreements, or corporate bylaws.

The forms that are given to you by the state when you register online are very basic, and the ones you get online are very generic, and aren’t tailored to you or your business. Many omit important considerations that governing documents must have. Anything you don’t include in your corporate documents, will default to Florida law, which may not be what you want to happen in your business.

And only an attorney can give you the pros and cons of setting your business up in certain ways.

Polices and Procedures

And even if you have done all of this, you still have the matter of policies and procedures—the documents that set the rules by which your company will operate on a daily basis.

Some of these documents may include:

• Data management polices
• Employee complaint and harassment reporting policies
• Travel policies
• Payment and reimbursement policies
• Emergency policies
• Device use policies
• Work from home policies
• Work safety policies
• Shareholders agreements

Federal and state laws give you a lot of leeway to establish whatever policies that you want. But the subtle wording of your policies can protect your business, and avoid legal liability down the road.

Starting a business? It really is best to get legal help. Call the West Palm Beach commercial litigation lawyers at Pike & Lustig today.