Why You Need a Lawyer to Start a Business: Ten Reasons

When people decide to start a business, they usually have a great idea and some money to invest in a business. Some people choose to start their business on their own or with family members, while others have partners or other investors who will not be involved in the day-to-day affairs of the business.

10 Reasons Why You Need A Lawyer To Start A Business

Laws that apply to startups differ based on the specifics of the situation, and even entrepreneurs who choose to go it alone have options to protect themselves from personal liability for business debts and obligations. For this and other important reasons, you will most likely need an attorney for your new business.

10. The contracts.

Most companies execute contracts for space, services and supplies. Companies often have agreements between partners, investors and employees. It’s important to get it right so you don’t end up in court.

9. Registration, Licenses and Permits.

Some business entities must register with the state to be recognized. Even companies that are not required to register may have to obtain licenses or permits.

8. Legal structure of the business (Commercial form).

The choice of your business structure (i.e. sole proprietorship, partnership, LLC, or corporation) often dictates the legal responsibilities and potential liability of those involved in running the business, as well as the manner in which it can operate. For example, choosing the wrong entity can make you personally liable for the mistakes of employees or partners.

7. Multi-state businesses.

The preconditions for forming and running a business entity in one state cannot be accepted in another state. If you are not careful, the protections you have in your state of operations can be lost if you do business in another state.

6. Strict compliance.

With some business entities, you must strictly comply with the state law that governs that form of business, or you may lose the benefits and protections of those laws.

5. Capital.

Businesses need to raise money, keep records of income and distributions, and behave in a fiscally responsible manner. Different business entities may require different procedures for raising capital and making distributions.

4. Variety of Entities.

Although there are five basic business entities, there are other options within these entities that determine aspects such as double taxation and liability for the actions of the partners.

3. Autonomy.

With many business entities, the things you don’t decide are decided for you. Most states have adopted “Uniform Laws” that fill in the gaps for business entities where their bylaws, regulations, and other organizational documents are silent. You may be subject to a whole host of laws and regulations that you don’t even know exist.

2. Taxes.

Different forms of business offer different tax advantages and disadvantages. The only thing more crucial to a new business is responsibility.

1. Responsibility.

Different business forms provide different protections and risks for the entrepreneur / investor. Personal liability means that your business puts everything you own at risk. An attorney can help you avoid this situation or minimize your risk. Knowing your personal responsibility, and reducing the risk that your business could devastate the financial well-being of you and your family, is well worth a visit with an experienced attorney. See Corporate Responsibility for more information.


In most cases, you will need the services of an attorney for your new business at some point, perhaps for tax services or employment law enforcement. Whatever the reason, be sure to contact the right attorney for your needs. Contact a qualified local tax attorney to discuss your needs and help you establish a business that maximizes your profits and minimizes liabilities.

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