Frequently Asked Questions About Corporate Law
Why use an attorney to form a corporation?
The primary reason to have a corporation is to protect your personal assets. Many individuals attempt to form their own corporations and do not do it properly. When that happens, they can often be left unprotected and become personally liable when they need the corporate protection most. Typically, an issue with regard to the faulty formation of a corporation does not arise until there is a problem and an individual finds himself being sued personally.
Using a lawyer who is experienced in corporate law allows you to be assured that your corporation is formed correctly and that your personal liability is truly limited. The typical “online corporation company” is really only selling you a blank form. They typically are not targeted to the laws of a particular state, which vary widely, and there is no one to ensure that you are either completing the forms correctly or that the document being used fits with what you are trying to accomplish.
Using an attorney to give you guidance in the beginning can save you thousands in potential liability and also give you the peace of mind that your corporation has been organized correctly.
Should I form a corporation, a partnership, an LLC or some other entity when I start my business?
There are many different types of entities that can be formed in relation to any business. People are often familiar with the terms “C Corps”, “LLCs”, “S Corps”, “Partnerships” and maybe some other vehicles. There are significant taxation issues that arise if you choose the wrong type of entity within which to conduct your business that can result in double taxation, increased personal liability and other problems that only an experienced attorney can recognize as you begin a venture. Spending a small amount on representation at the beginning can potentially save you thousands of dollars in the future. If you are going to start a company, you should be starting it on the right path and scrimping on an attorney at the beginning is pennywise and pound foolish.