Do I Need A Lawyer To Incorporate My Small Business?

Do I Need A Lawyer To Incorporate My Small Business?

by | Oct 1, 2021 | Business News

Do I Need A Lawyer To Incorporate My Small Business?

One of the most important first decisions you’ll make as a business owner is selecting the business structure. If you and your attorney determine that a corporation is the correct business structure, there are some procedures to follow in order to correctly file the necessary paperwork, and having a small business attorney to help can end up saving you time and money in the long run. 

What is a Business Corporation?

A corporation is a legal entity independent from its owners. Depending on whether you are taxed as an s-corporation or a c-corporation, corporations may have profits and may owe taxes. Corporations taxed as s-corporations and c-corporations typically give the owners (shareholders) limited liability protection and the corporation is held legally responsible for its actions. While corporations provide protection from personal liability for their owners, corporate record-keeping, operations, and reporting must be more meticulous. Most businesses that will need to raise capital or that plan to “go public” benefit from incorporating. 

Benefits of Incorporation

There are several advantages to forming your business as a corporation:

  • A corporation minimizes your personal liability and may provide you with tax benefits.
  • Health and life insurance premiums may be deducted from your company’s gross income on the company’s tax return.
  • Incorporating also means that people will treat your firm seriously, and you’ll be able to lay the groundwork for future growth.
  • You may raise cash for your company by selling shares.
  • If you decide to sell your company, there may be advantages to being a corporation.

Basic Incorporation Procedures

The process of incorporating your business can vary depending on what state your business operates in, but in general, there are a handful of procedures that apply such as:

  • Selecting a name for your business and researching whether or not another corporation has registered the name
  • Preparing article of incorporation
  • Filing articles of incorporation
  • Choosing a board of directors
  • Adopting bylaws
  • Electing officers
  • Registering an agent to accept legal documents
  • Issuing stock
  • Determining whether you want to be taxed as an s-corporation or c-corporation and filing the appropriate documents to be taxed as you determine
  • Filing to obtain a business license
  • Obtaining an EIN to tax purposes

Do I Need a Lawyer To Incorporate My Small Business?

It is possible to incorporate your small business without the assistance of a lawyer, but it may not be the best route to take. Legal fees can be an expense that many new business owners don’t want to pay. However, keep in mind that there may be a higher cost to doing it yourself: You put yourself through the tedious process and the risk of making mistakes if you don’t do very thorough research. The paper-filing process isn’t the hard part, but the do-it-yourselfer may not be aware of tax and legal liability issues. Securities regulations might be complicated if you plan to offer shares, even to those that work in the company or close friends and family.

Get Advice Before Incorporating Your Business

The structure you choose for your company has implications for ownership and how the law views your organization. The agreements you make with yourself, the business, and the other owners will have a lasting impact. Consulting with a business attorney who has expertise in creating these documents about your future plans might be the difference between a successful company and one that fails. If you’re ready to form a corporation or you’re still wondering, “do I need a lawyer to incorporate my small business”, contact the Law Offices of E.C Lewis today. 

What Does a Contract Lawyer Do?

What Does a Contract Lawyer Do?

by | Sep 27, 2021 | Business News

What Does a Contract Lawyer Do?

What Does a Contract Lawyer Do?

Contracts are legally enforceable agreements that are a part of day-to-day business operations for companies of all sizes. Contracts should not be written or signed haphazardly, especially when your business and livelihood are on the line. It’s critical to understand the legal consequences of what you’re entering into and ensure that the contracts created by your business are legally sound. That is where contract lawyers play an essential role. So what does a contract lawyer do, exactly? 

A contract lawyer’s tasks and responsibilities include contract drafting, contract reviewing, and ensuring the interests of their clients are protected. Contract attorneys are familiar with contract requirements and how to ensure that they will be enforceable. Certain legal features and wording are frequently required in these sorts of contracts. A contract lawyer may assist a corporation or individual in including the terms essential for their commercial requirements, as well as any legal terminology that the individual may not be aware of. A contract lawyer may also be able to recommend a litigation attorney who can represent a client when a contract is breached. 

 

Contracts for Startup Businesses

 

Starting a business has various components, from developing your initial idea to hiring your first employee, and each stage may present new obstacles. A contract lawyer can assist you in determining which contracts are required between you, your partners, and your company. Even if you are the only proprietor of your company, you may require agreements between you and your company to protect your limited responsibility. Third parties you wish to do business with may demand business agreements in order to move forward as well. A contract lawyer can ensure that the contracts you create and sign are the appropriate ones for your company and needs. 

 

Ongoing Business Contracts

 

Contracts are a necessary element of running a business. Contracts aid in the development of both your company and your commercial connections. Documents like your Employment and Independent Contractor Agreements, as well as Nondisclosure Agreements, are critical to legal compliance. Because you will use these papers frequently, it is critical that they be done correctly the first time and reviewed annually to ensure that they continue to satisfy your business’s demands and current legal requirements. Master Service Agreements, Vendor Agreements, Lease Agreements, and Manufacturing Agreements are also contracts you may encounter or need to draft during your time as a business owner. 

 

Specialty Agreements

 

There are some agreements that may need to be reviewed once a year or even less frequently, but if you lapse, you may cause a bit of trouble for yourself. It’s all too easy to forget about your software license agreements, online privacy policies, and website terms of service. A contract attorney will make sure you’ve taken all of the required measures, and if there happens to be a website dispute or software licensing violation, they can refer you to a litigator who can represent you. Intern Agreements and Professional Engagement Agreements are two other types of specialty agreements you could encounter as a small business owner.

How Much Does A Contract Lawyer Cost?

 

The cost of a contract attorney varies depending on the attorney’s experience and the specifics of the case. While most attorneys charge hourly, you may find some attorneys charge by the contract. Contract attorneys that are drafting or negotiating contracts may cost a different hourly amount than an attorney that does litigation regarding contract breaches. Most attorneys can give you a range of fees for different contract issues so that you have an idea of how much things will cost before you hire an attorney.

Contract Law at the Law Offices of E.C. Lewis 

 

If you have contracts that need to be reviewed, you’re disputing a contract, or need to address a potential breach of contract, don’t hesitate to reach out to schedule a consultation. Elizabeth Lewis is an experienced contract law attorney who continues to help businesses all over the Denver metro area, Colorado, North Carolina, throughout the United States, and internationally with their contract law needs. Schedule online now or call 720-258-6647!

 

Small Business Legal Checklist

Small Business Legal Checklist

by | Sep 21, 2021 | Business News

Small Business Legal Checklist

As a small business owner, you must wear a lot of hats! Unfortunately, one of the hats that is difficult to wear is the one involving legal matters. Whether you are just starting a business, are making changes in your current business structure, or are exiting a business, getting small business legal advice can be crucial. In an ideal world, you want to protect all you’ve built as much as you can and avoid any missteps along the way. Use this small business legal checklist to get your legal matters in order to prevent feeling overwhelmed or anxious about missing an important step.

Legal Help for Starting a Business

Starting a business often requires the most attention and legal advice since there are many different things to consider, such as:

Choose Your Business Structure

During business formation, you will need to select from a variety of legal structures for your company. This should be one of the first items on your small business legal checklist. Each type of business provides distinct organizational possibilities, each with its own set of tax and liability concerns. Prior to making a selection, you should extensively examine each legal structure and speak with an attorney and an accountant. These business types include:

  • Sole Proprietorship
  • LLC
  • Partnership
  • Corporation

Forming Contracts Between Owners

A contract is a legally binding agreement between two or more parties. If you own your business with other parties, it is important to have sound contracts stating the parameters of ownership – you can think of it as a prenup agreement for your business. Contracts are meant to protect your business and resources, as well as your personal assets if they are correctly constructed. Unfortunately, faulty contracts may do the opposite.

Contracts with Third Parties

As a small business owner, you will likely have contracts with customers, vendors, employees, contractors, and other individuals or businesses. While some business owners still rely on handshakes to confirm an agreement, in the legal realm, the one who has everything written down is usually the winner, especially if the terms are clear and concise. Always acquire a written confirmation, especially when the agreement involves the exchange of money or intellectual property.

Legal Help For An Existing Business

Even if you have already been in business for many years, you still may encounter situations where you need legal advice, such as:

Signing A New Lease

Throughout the life of your business, you may lease several different office spaces, whether it is for relocation or an additional location. The laws surrounding a commercial lease vary from state to state. When entering into a commercial lease in Colorado, consider factors such as what is prohibited on the property, how rent is calculated, if the rent will increase over time, and what obligations you have as a renter. Being a commercial renter is extremely different from residential so make sure you know what you are getting into before you sign a commercial lease.

Employment Law

Once your business has been up and running for a while, you may find that it’s time to start hiring employees. Both Colorado and federal employment laws aim to identify and defend the rights of employers and workers in the context of a commercial relationship. The objective is to guarantee that all parties are treated fairly by each other and the courts if required. There are subtle differences between employees and contractors that a small business lawyer can help you sort through.

Legal Help When Ending a Business

The process of exiting, dissolving, or selling a business can be tedious and require consulting with an attorney with experience in this area and matter such as:

Closing a Business Without Selling

Before you can close the doors on a business for good, a lengthy number of processes must be completed. These frequently involve legal procedures that involve the help of a business attorney. In some cases, in addition to the lawyer, an accountant is required to dissolve the firm. While a legal representative can verify that legal paperwork is completed appropriately, an accountant can examine revenue, income, and all outbound transactions to ensure that everything is lawful and that the books are free of any questionable activity. Depending on the reasons why the business is closing, you may also need the help of other professionals which your attorney or accountant can recommend based on your circumstances.

Transferring A Business To A Successor

When the owner or a senior-level partner retires, becomes disabled, or dies, small firms and partnerships without sound succession plans often collapse. Family companies, in particular, require proper succession planning because they must either identify family members who are suited for leadership roles or consider other possibilities outside the family and consider tax implications for transfer of the business to the next generation. The keys to a successful hand-off include planning ahead of time, basing decisions on business needs while also managing family expectations for family businesses, knowing the current state of tax law, and reviewing the plan as conditions change.

Selling Your Business To A New Owner

There are several factors to consider when selling a business, such as the business’s value, what portion of the company will be sold, and when the sale will take place. It is crucial when drawing up a purchase agreement that a business attorney with experience in business sales or acquisitions takes the time to thoroughly review all documents.

Elizabeth Lewis, MS, JD Is Your Denver Small Business Lawyer

Regardless of what stage your business is in, this small business legal checklist should help you identify areas where you may require legal advice. Law Office of E.C. Lewis, P.C. understands that the laws governing these areas are always changing, so even if you’ve run a Denver small business for decades, it’s a good idea to keep in touch with a Colorado business attorney on a regular basis to discuss any recent changes. Schedule a consultation today!

Will Corona virus affect your business?

by | Feb 28, 2020 | Business News

Will Corona virus affect your business?

Even though I am a business attorney, I worry like most business owners about current events. Recently, the news and the markets have been rattled by the outbreak of the corona virus. Like me, you are probably wondering how the virus could affect your business and how to mitigate any damages that could be caused by it.

 

For companies that manufacture products (or have products manufactured for them by third parties), the biggest area of concern is where your products are manufactured and where the raw materials to manufacture them come from. If you use manufacturers in China or other areas where the corona virus has shut down factories, you should be looking at securing other manufacturers. Legally, entering into contracts with these manufacturers earlier rather than later may help you against competition that hasn’t done so.

For companies that provide retail or hospitality services, ensuring that you have enough staff to cover for sick employees could be essential. While you may not want to hire additional employees, you can reach out to companies that have different hours or, if your employees are mostly part-time, to companies that also have mostly part-time employees. You can have an agreement with these companies that if either of you are short staffed, you can call the other company to use their employees while they aren’t working for them. Of course, you would want to discuss this with your business lawyer or employment lawyer before you do so to find out the best way to structure the arrangement.

For companies that can offer it, having employees work from home can help mitigate the spread of any disease and keep your business up and running. Essential personnel can still report to the office, but by having less employees at the office, your essential staff can try to maintain CDC recommended distances from each other. Prior to allowing employees to work from home, it is important to contact your insurance company to see if there are any issues with this arrangement. You will also want your business attorney to write agreements for employees to sign if they are going to take any company property home with them, such as a laptop, cell phone, or printer.

Lastly, ensuring that sick employees do not come to work is key. While this is a good policy anyway, with the spread of the flu and potentially the corona virus, it is extremely important. One sick employee at work could easily create a situation where ten employees are out a few days later.

If you need help with any of the agreements listed above, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Business Attorney. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com

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Real Estate Services for Business Owners

Elizabeth Lewis provides the following real estate law services to small and medium sized business owners in Denver and throughout Colorado:

  • Commercial real estate purchases
  • Legal review of commercial real estate leases
  • Protecting your assets

We are still screaming over ice cream!

by | Jun 10, 2019 | Business News

We are still screaming over ice cream!

Several years ago, I wrote a blog about ice cream trucks. Multiple incidents throughout the past year were highlighted, including the dispute between Sno Cone Joe pushed Mr. Ding a Ling.

Well according to CNN, this was only the tip of the ice cream and things have stayed icy for ice cream truck businesses. CNN reported that over 45 ice cream trucks have been seized by the city. The reasons included summons of 22,000 citations for traffic violations resulting in at $4.5 million in fines. However, it gets better. The ice cream truck owners are accused of creating shell companies to avoid the fines.

If you buy ice cream from a truck this summer, make sure to tip well! This is a dangerous business.

If you are thinking about starting an ice cream business, or any other business, call me, your Denver small business attorney, Elizabeth Lewis today at 720-258-6647.

Yes, you do need business insurance if you work from home!

by | May 1, 2019 | Business News

Yes, you do need business insurance if you work from home!

Someone on NextDoor.com asked how bad flooding could be in the Denver area. Here are some pictures of the flooding over the years. I think the one in 2013 was a water main break, but it gives you an idea of what the area looked like before the water receded in the 2015 flood. The 2015 flood pictures (all of the cars) just show the aftermath of of the rainstorm we had. The area has flooded a couple of other times as well, unfortunately I didn’t take pictures the other times. The cars are all of the sidewalk (or wherever they ended up) because of the force of the water. The water reached up to the front door (and probably further inside) in the picture with the cab if memory serves me right. This is right at 14th and Kearney/Krameria behind Mayfair Liquors for reference. Just another good reason to make sure you have business insurance – and especially a rider for business equipment if you work from home as your home owner’s insurance may not cover business property in your house without a rider.