Company Formations are the process of turning Companies into legal entities. It is often known as registration of the company and is followed by selecting the proper form for the business.
Is there any idea in your mind that you are planning to fulfill? Or have you at last decided to start your dream business? We are glad that you have decided to pursue your passion. Still, starting a business or shifting it to a large scale needs few company formations. Most of the states require you to register your business as a legal entity to resume your passion.
No doubt, starting a new company is one of the most exciting phases of your life. Yet, it needs some legal processes. In which, you might need the help of a company formation lawyer. There are many procedures involved that you must go through to register a company. Thus, explore more with us and learn why you need to search for a business formation attorney near me.
What is a Company?
A company is a business created by a group of people, with its rights and duties for the individuals involved. It may be a profit-making private corporation or a public-benefit company.
A company has many of the same rights and duties as a person, in the eyes of the law. Thus, it has the power to buy, sell and own land, or enter into leases and contracts, and file lawsuits. It is responsible for paying taxes. If it breaks the rules, it may be charged and trained (often with fines). Also, a company works past any member’s life. Thus, it can work forever on its own.
What Is Company Formation and Why You Should opt For It?
Company formation is the process of registering a company or business as a legal unit. What that means is, after it is formed, it is a separate legal body. Thus, the people involved in company formations are separate from the companies. They do not have to worry about paying taxes personally. The process is also called the incorporation of a business.
Benefits of Company formations
Now, you might wonder why you should register your company as a separate unit? Forming a company has some pros. For example, it functions on its own under the law. Thus, every law, contract, taxes, and other legal duties apply to the company rather than the owner.
Some other gains of forming a company are:
The term refers to the aspect in which owner and business are treated as separate units. That means any debt, claims, issues, or assets will be in the company’s name rather than the owner’s name. Thus, the company will pay the debt, and the owner’s assets will remain in protection. However, for businesses not incorporated, the owner’s assets are not shielded by limited liability protection.
As an owner, you need to pay some taxes and fulfill some legal duties. But if you consult a company formation lawyer, you will pay minimum taxes. For example, if you do business without forming a company, you may pay some extra tax. Thus, search incorporation attorney me and register your business with the help of a lawyer. You can check Attorneys Real Estate Group for expert lawyers.
Your Company’s Status
If you plan to register your company, there is some good news for you. Clients will consider you a more genuine and legitimate business. Thus, you will attract more deals and customers for your business. Also, employees like to search company before working with them as well. Hence, you are likely to get more capable employees for your company.
Steps to Form a Corporation
The corporation’s life begins with the filing of terms of incorporation with the Secretary of State. Before filing the articles of incorporation, keep the following points in mind.
All 50 states allow you to form a corporation. Many people choose to start their businesses in their home state. If a company is doing business outside the state, it must register as a foreign company in that state. An Arizona corporation with its main business office in California, for example, must register in California as an “international corporation” and have a registered agent in Arizona.
A company’s name must generally end in “corporation” or “incorporated”. A company name may face denial if it is likely to confuse the public. Also, if it is too similar to another company’s name incorporated in that state.
If your company’s name would be the same as other products, you should seek federal trademark rights for the name. Thus, no one else in the U.S. can use the same name for goods or services as you. Also, you can search for a unique name with the help of a lawyer.
Board of Directors
A corporation’s board of directors administers its operations and approves major business decisions. A director may be an owner or an officer, but it is not vital. Shareholders elect directors, who serve for a fixed period. A corporation needs to have at least one director.
A company’s directors owe the duties of loyalty and care. In general, this means that board members must behave fair, with due caution, and in the firm’s interests. If a director stands to profit money-wise from a business deal, they must refrain from voting on the matter.
The board of directors appoints officers to look after the corporation’s daily activities. A corporation requires at least three offers:
- Treasurer or Chief Financial Officer
It is not vital for officers to be directors; however, they can choose to be. There is no limit to the number of offices a person can hold. A single person can occupy all the positions.
Each firm must have an agent with a license, who is in charge of receiving official state notifications. They can assist if someone sues the company. The agent must be one of the two below:
- An organization that provides registered agent services and has a business office in the same state
- An adult with a street address (P.O. Boxes not allowed) in the same state
How can a Company Formation Lawyer Help?
Company formations require skills, you need to be sure about some legal aspects. Thus, hiring a company formation lawyer can save you a lot of potential trouble. They can help you with contracts, shares, deciding the form of the company, and taxes. Not only that, in case of any lawsuit, they can guide you throughout the process. Here are some reasons you should search for a business formation attorney near me.
Structuring and Form of Business
After searching incorporation attorney near me, and hiring an experienced company formation lawyer, you will get huge help. The company formation lawyer will help you in deciding your company’s structure and business form. Picking the appropriate form will greatly help you with taxation and other legal liabilities. Some structures or bodies are:
- Non-profit Corporations
Choosing Company Name
Before registering the company, searching for an incorporation attorney near me is helpful. They can assist in choosing the right name and reserving it for your company. Thus, hire a company formation lawyer before you select the name for your company. You must consult expert lawyers to avoid future issues.
Transactions and Taxes Involved
If you open a company, there will be some transactions. Thus, according to your business form, a company formation attorney guides you about the taxes involved with the transactions. In that way, you can not only get benefits, but you will be well aware of the taxation process.
Contracts and Agreements
According to your business form, you will sign certain contracts. Still, you must be aware of what are you signing or what agreements should you do before starting a business. For instance, if you start a company with someone else, you must define that in the agreement. Thus, a lawyer can help you with documentation related to company formations. They can assist you in writing the contract. Hence, contact Attorneys Real Estate Group if you are looking for a company formation lawyer with experience.
Employment Structures and Agreements
The company formation lawyer can help you in deciding the right operating structure for your organization. They can help you decide the employment structure, and all the other agreements involved before forming a company. Thus, they can help you in drafting the related agreements and documentation.
Frequently Asked Questions About Company Formation Attorneys
When it comes to starting a company or business, there have been lots of debates amongst people on the subject of attorneys. For instance, while there are those who don’t believe that an attorney is required, some are of the opinion that their services are crucial. This section will be listing out some of the most popular questions that have been asked about these professionals when it comes company formation.
Do I Need A Lawyer To Start My Business?
It depends on the type of business you plan to operate. For instance, small businesses or sole proprietorships do not need the services and expertise of a professional attorney. They can easily be launched without going through any complicated legal process. However, an attorney will be required when you plan to form an LLC corporation. This is because apart from adhering to important legislations, documents like certificate of formation will have to be filled. You need the help of an attorney to do it the correct way.
They can also help in creating documents that relate to issuance of stocks to shareholders and appointment of corporate directors. A professional attorney that understands company formation process will create the required documents that fit your business.
How Much Does A Company Formation Attorney Charge?
When it comes to charges for hiring company formation lawyers, you have to understand one thing. This is the fact their rates are not fixed. For instance, charges can range from $100-$400 per hour. Some factors that can influence the cost are:
- Size of company to be formed
- The knowledge and experience of your preferred lawyer
- Your location and how much other attorneys are charging
- Complexity of such company formation process
- And more
What Are The Implications For Not Hiring A Business Formation Attorney?
There are lots of things that can go wrong when you fail to hire an attorney who can help out in the formation of your company. For instance, you may struggle to identify the right business structure for your company. Based on his expertise and past experience, an attorney can render professional advice on whether a limited liability partnership, limited liability company or corporation will be the ideal option for you.
Also, you could face fines and charges as an employer by failing to comply with the necessary government stipulations that guide the activities of employees. This can happen when you have failed to hire an attorney to handle the company formation process. Furthermore, you are likely to face issues in the aspect of intellectual property protection. With the expertise of an attorney that understands the entire process, such problem can be avoided.
Generally speaking, a business attorney will help in the process of identifying risks. Such professional will come up with the best ways of alleviating them to ensure your company is running smoothly.
How Can I Find The Right Business Attorney?
It is true that many business attorneys are available to choose from. However, you need to understand that many of them will struggle to render high quality services as expected. This is why you need to take out time and ensure the right professional is hired. The tips below can help you hire the best company formation lawyers around your location.
- Always consider their experience and projects they have handled before in relation to company formation.
- Your budget should fit into the charges or cost of hiring an attorney.
- Try to find out from other company owners how helpful an attorney has been.
- Choose attorneys that are specialized in company formation
Real Estate Business Formation Attorney Near Me
If you or someone you know plans to start a company, you need someone to help you navigate the process. You can avoid a lot of problems by contacting an expert company formation lawyer. With the help of an expert, you can avoid many issues while forming a company. A professional business attorney is the most credible source of legal advice.