Whether you need an attorney to start your business depends in large part on what legal type of business you’re starting. The simpler your business, the less you’ll need an attorney.
A sole proprietorship is the simplest business form. It doesn’t require that you register your business with your state, so no, you probably don’t need an attorney to start this type of business. No specific paperwork is required other than local business licenses, and even that can depend on the exact nature of your business and your area’s unique requirements.
Partnerships and LLCs must register with the state. Documents must be prepared, such as a partnership agreement or an LLC operating agreement. You might be able to register online with your state or use an online service to register your business, but it might be a good idea to use an attorney if your business is at all complicated.
Corporations or S corporations must register with the state as well. They must prepare bylaws and other documents, and they have a far more complicated ownership structure. You’ll almost certainly need an attorney to help you start any type of corporation, An S-corp starts as a corporation then elects S corporation status with the Internal Revenue Service. If it sounds complicated, it is. You might need help.
When You Might Need an Attorney for Business Startup
The most common reasons for needing an attorney are:
- Navigating the many forms and requirements of legal documents, like incorporation documents, that are involved.
- Assurance the startup is being done right.
- Enabling you to focus on other aspects of the business so you don’t have to spend time learning the legal processes.
- Support with specific tasks like trademarking your name, reviewing lease documents, discussing potential legal structures, and preparing incorporation forms.
- Online legal form providers don’t always do it right. Businesses aren’t one-size-fits-all, so blanket legal documents don’t always work.