Should I Incorporate Myself Or Use A Lawyer?

With the rise of DIY legal services, many entrepreneurs and small business owners may find themselves pondering the following questions, “should I incorporate myself or use a lawyer?” or “Should I hire a lawyer for opening up a small business?” If you find yourself asking these questions, you should consider a few things before making a decision.

Time

One thing to consider is whether you have the time to do the research. At the same time, do you want to rush through something that seems mundane, which could make or break your business? An experienced business lawyer has probably incorporated dozens of companies in multiple states. The time you’ll spend finding the right state website alone could be used for other tasks.

Knowledge

Another factor to consider is whether you have sufficient knowledge to perform the task at hand. For example, how comfortable are you discussing the differences between a Sole-proprietorship, LLC, C-Corp, S-Corp, or Partnership? An experienced business lawyer will ask you the important and nuanced questions to make sure you’re starting the business on the right foot.

Resources

Lastly, do you have the resources to lay the proper foundation for your entity? Do you know which governing documents are needed to establish the proper ownership structure, distribute shares, or the like? While DIY resources offer templates, and you could certainly find templates online, do you fully understand them? An experienced business lawyer has templates for dozens of industries, which would allow them to tailor the document to your needs. DIY sites typically offer one template for everyone, and templates from random websites are unreliable.

In Sum

If you’re one of the many entrepreneurs or small business owners asking yourself if you should incorporate your entity yourself or use a lawyer, consider whether you have the time, knowledge, and resources to properly form your entity. The long-term gain of hiring an experienced business lawyer day one will most likely outweigh the short-term pain of spending money to do so.  

Employees Refusing To Come Back After PPP; Now What?

If you’re like the hundreds of thousands of businesses who received an SBA loan under the Paycheck Protection Program, you’re likely wondering what comes next? Like you, many business owners are facing a new challenge; employees are refusing to come back to work upon reopening.

Whatever the reason may be, an employee refusing to come back to work could have an impact on your PPP loan forgiveness. Thus, it’s a problem that needs solving.

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What Is A Partnership?

The IRS defines a Partnership as “relationship existing between two or more persons who join to carry on a trade or business.” As such, the partnership does not pay taxes but enjoys pass-through taxation. Each partner shares in the profits and losses of the business. The partners are given a Schedule K-1 (Form 1065) for their taxes.

Every state has its own laws, but typically, there are no formal requirements to establish a partnership, such as filing a document with the state (as is typical for corporations and limited liability companies) or drafting an agreement between the partners.

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