If you're trying to get a startup off the ground, the first thing you need to do is hire an attorney. Many people make the mistake of moving forward with a startup before getting the legal support they need. Unfortunately, that can cause serious problems for them down the road. To help prevent mistakes, here are four reasons you need to hire a corporate lawyer for your startup.
Tax Liability Issues
Now that you have plans to open a business, the IRS has plans to collect taxes from you. Commercial taxes are quite different from the taxes you pay as an individual. For one thing, the IRS expects payments more often than once a year. Once you become a business owner, you'll need to pay taxes at least four times a year. Those quarterly taxes help to reduce the liability you'll owe once April rolls around. There are other tax liabilities you need to know about, as well. For instance, if you plan to employ people, you'll be responsible for payroll taxes and a variety of other taxes. A corporate attorney can help you to avoid tax liability issues.
Creation of Partnerships
If you're going into business by yourself, you won't need to worry about partnerships. But if you plan to go into business with partners, there are legal matters that will need to be taken care of first. You'll need to file legal documents for each partnership you enter into. You'll also need to have contracts for each of those partnerships, which is why you should be working with a corporate lawyer. A lawyer will ensure that all the documents are in order for the creation of your partnerships.
Interstate Business Plans
If you have plans to branch out beyond the boundaries of your state of record, you need to hire a corporate attorney. You might not realize this, but there are strict laws governing interstate business plans. For one thing, you'll need to register your business in every state you plan to operate in. Business registration requirements are different in each state. That's where a corporate attorney becomes invaluable. They'll see to it that your business is properly registered in the states where you plan to operate.
Income and Distribution Records
If you're getting a startup off the ground, you may need to do some fundraising first. If that's the case, accurate financial records are crucial. You'll need to document all the money that comes in for your business startup. You'll also need to document how that money is distributed. Before you find yourself facing financial problems with your new startup, consult with a corporate attorney.