Why Do I Need a Business Formation Attorney?
The attorneys at Harris Cook are skilled in helping individuals start and grow their businesses. While the do-it-yourself approach may seem appealing to some, there are several important steps that a skilled attorney will make sure you do not miss when starting a company. Whether your company is big or small, establishing clear guidelines is of great importance, and working with experienced counsel can help ensure you are set up for success.
Are there any cons to taking the DIY approach when starting a business?
It’s very easy for business owners to overlook some of the legal responsibilities and common sense reccommendations that go along with setting up a business. Business owners are often more focused on running their business than they are in the technical legal requirements for starting the business and setting it up properly.
A couple of things that can often happen is that a client may start their business by preparing their own certificate of formation and file it with the Secretary of State but they fail to prepare a company agreement and/or their organizational minutes. If those documents are not created, then there is no safety net or rules for how the business is supposed to operate. There is a large set of rules in the business organization’s code that can cover those gaps when such documents were not prepared at the outset. However, those rules are not always predictable and they are not always known by everybody. So for that reason, we always try to make sure that our clients have a proper set of initial documents including a company agreement that explains how the company is run, and organizational minutes which explain the facts surrounding the organization of the company.
Is there any situation that someone would not need to consult with an attorney?
Even if it’s a single-member LLC or another one-person entity of some sort, consulting with an attorney is still a good idea. There are documents we typically prepare that clients often don’t prepare when they set up a business on their own. These documents are not just needed by our clients, but they are needed by people that our clients deal with.
For example, if a client needs to open up a bank account, if a client needs to get a lease for their business, or if a client has a significant relationship with another business. These are all instances of documents that clients often don’t prepare themselves because they don’t have the experience. Those same documents are the documents that are often needed to show other parties how the company is to operate, who has the authority to act on behalf of the company, and other general information about the company that would be unknown or nonexistent if they were not prepared by someone with experience.
If you are interested in forming a business, we encourage you to contact the Business Formation attorneys at Harris Cook, LLP at 817-275-8765.