Corporate Formation LLC Attorney-What They Do For You

In creating a business, we make several choices relating to the structure of the business. One of the most significant decisions is finding the legal structure or ownership structure of the business. The business can take these forms: Limited Liability Companies (LLCs), non-profit organizations, corporations, co-operatives, sole proprietorships, and partnerships. Your choice of any of these business forms will depend on (but not limited to) taxation, liability, management arrangement, employees, and record keeping. As said earlier, finding the right form of business is the key, and this is why you need the services of a corporate formation attorney to assist you in your decision-making process. An attorney will help you explore each business structure’s advantages and disadvantages, shareholder and legal issues associated with each business structure, and others.


In this article, the focus is on the LLC business structure. The article discusses what an LLC attorney can do in forming a corporate business entity to ensure you are protected from terrible legal and financial consequences.



LLC attorneys have a wealth of experience from numerous cases they have worked on in forming a company. They didn’t get their experience just by reviewing bar articles, reading statutes, and studying cases. Did you get your business idea by only studying books on business ideas? I guess not! Their work experience is valuable when reading between the lines and pointing out the right approach to take, without you going through all the Do It Yourself processes found on the internet.


Determine Which Form of Business Is Appropriate For You

It is the duty of an attorney with the right expertise to guide you regarding all the advantages and disadvantages of each type of business structure (limited partnership, corporations, general proprietorship, sole partnership, or any other limited liability formats) as applicable to your kind of business.


The formation of an LLC grants you the flexibility of operating your business while been protected from the liability of debts and legal judgments associated with the company. The formation of a corporate entity also includes issues like taxation and partnerships, shareholders issues, and the investors’ views on your business structure. Considering all these factors, determining if an LLC is the appropriate legal entity by seeking the help of a corporate formation LLC attorney is of great importance.


Multiple Legal Requisites To Form A Valid LLC

The formation of Limited Liability Companies requires you to fulfill multiple legal requirements for your LLC to get the approval of the appropriate regulatory body in your country. Failure to adhere to the required documentation might result in a delay in creating your LLC and may make your business entity vulnerable and liable soon. The legal documentation for an LLC include:


  • A Limited Liability Company name that is legally valid
  • Drafting as well as filing of legal documents that meet regulatory standards e.g., Articles of Incorporation or Organization
  • Drafting a customized and appropriate Operating agreement for your Limited Liability Company
  • Filing charges


A Counselor Adviser

Having a reliable LLC attorney in the early days of the formation of your company can be of significant help to your business, legally or otherwise. Your attorney has experienced the growth and success of several businesses. Likewise, they have also experienced other businesses fall; and their wisdom and counsel (when necessary) can be helpful on the simplest and terrible business-related issues. This creates control for the business decisions you make in ensuring a smooth business operation.



As your company grows, you might require an accountant, banker, payroll expert, general company counsel, realtor, funding source(s), etc. For similar reasons stated earlier that an LLC attorney business and legal experience and counsel are useful, the contacts of an LLC attorney in the region where such experience is valuable might be beneficial in running your business. Your LLC attorney can be an important point of call when you need to establish a business relationship with such associates.


Cost Implication

The presence of an LLC attorney can assist in reducing certain expenses in your business. It is possible to make mistakes (e.g., with the company’s ownership structure) during the formation process of your business, especially when your business is created without the services of a lawyer. To restore operational soundness as a result of these mistakes might be costly.


In law, executing the Right to Repair or Replacement is expensive. Such mistakes require a thorough review of the entire documentation and the drafting of new or revised documentation. This will cost more to execute than the cost of employing the services of an LLC attorney from the beginning of the formation process of your Limited Liability Company.


Drafting Your LLC Operating Agreement

The Operating Agreement of your Limited Liability Company spells out all your rights in the company. The Operating Agreement will set up the obligations, rights, and duties of your Limited Liability Company members. This agreement stipulates how the company will be run by its members (Board of Directors). It also dictates how the profits and liabilities of the company will be shared. The drafting of this agreement requires the services of an experienced corporate formation attorney sacramento. The Operating Agreement should be absolute and comprehensive and drafted in anticipation of any future related concerns.


The Concept of Limited Liability

Surprising!!! This comes after all others in our list of what an LLC attorney can do to create a corporate entity. There are several risks to consider when entering into a business structure with limited liability. The following should be considered:

  • The capitalization of the company
  • The management of the company’s bank accounts
  • The company’s signatories


Failure to consider all these and other related documentation appropriately may result in a situation in which a court sets aside limited liability and hold a corporate entity’s shareholders or directors personally responsible for the entity’s debts or actions.


The process you go through in forming a business whose legal entity is separated from the directors or owners of the company is centered on the fact that you don’t want to be responsible for the business’s liabilities. This is known as the concept of “Limited Liability.” In other words, the objective of the LLC business structure is to restrict the liability of an investor to only the assets invested in the creation of the business entity.



When establishing your business, it is vital to create and establish LLC as well. Not only it will be a safety net for your business but also, it will save your business from massive disasters. The right processes must be followed and adhered to. There is no better person to ensure that this is carried out effectively than an experienced corporate formation attorney Sacramento.