We often ask ourselves, “Why do we need a lawyer?” Assuming you have some legal training and experience, there are a few good reasons you may need a lawyer, such as forming a business entity, starting a business, preventing estate taxes, or providing checks and balances.
Form a business entity
The process of forming a business entity requires several steps and paperwork. The best way to go about it is to get help from an attorney like Lampert and Walsh. This will allow you to save money and time. However, if you have the resources, you can do it yourself.
Aside from the obvious, the legal requirements for establishing a business may differ by state. Before you begin, make sure you are aware of all laws and regulations affecting your specific business. If you do not, you could be in a situation you did not expect.
For example, you may be required to register your business with your state. This is done by filing the appropriate formation paperwork. These documents may also require you to pay a fee.
Aside from these essential documents, you’ll need to file an employer identification number (EIN) with the IRS. This will allow you to open a business bank account. You should keep this account strictly for business transactions.
You’ll also need to create an operating agreement. This document will lay out the rules and responsibilities of your company’s owners. If you have multiple owners, you can have a multi-owner LLC.
There are many different types of business entities. Each one offers its own advantages and disadvantages. Before choosing an entity, you should consult with a tax professional and an attorney. A proper analysis of these complexities will help you choose the best option for your business.
For instance, a limited liability company is a legal business entity that can offer a variety of benefits. The entity protects the owners from personal liability while at the same time providing tax benefits.
Depending on your state, there are other business forms to consider. For example, a partnership is similar to a sole proprietorship but has fewer rights.
Prevent estate taxation
If you want to prevent estate taxation, you need to have an attorney on your side. There are many legal ways to do so.
There are many different types of trusts that you can set up to protect your assets and reduce the amount of estate tax. There are also ways to give assets to your family members without incurring tax liability.
If you have a large estate, you may want to consider giving it to your heirs as early as possible. If you want to pay for college or other living expenses, you will need to accumulate wealth.
You can avoid estate taxes if your estate is below $1 million. However, this is not true for all states. There are 17 states that have an additional estate tax.
You can also keep your estate out of the tax loop by setting up a charitable remainder trust. These trusts allow you to hold life insurance payouts while keeping them out of your taxable estate.
It is also important to know that gifts to charity are never taxable to your estate. You can give up to $13,000 in 2012, and the value is not included in your total estate.
If you are married, you can also reduce your estate’s tax bill by gifting a lifetime gift to your spouse. The IRS reports that less than 2% of adults in the United States have paid the estate tax in recent years.
Start a business
If you’re starting a business and you’re not sure what steps you need to take, a lawyer might be able to provide some answers. Hiring a lawyer can save you time and money. They can help you navigate the legal complexities of starting a new business and avoid common mistakes.
Depending on the type of business you are planning on launching, the cost of starting a business will vary. For example, you’ll need to consider your state’s taxes, licensing requirements, and insurance requirements. You also need to decide how to finance your venture. You might want to consider getting an employer identification number (EIN) from the Internal Revenue Service. You can apply for one online.
A lawyer can also prepare a variety of important documents, such as contracts, leases, and patents. Your lawyer can advise you on how to best protect your intellectual property. They can also help you choose a business structure, such as a sole proprietorship or an LLC. They can also help you draft terms of service and vendor contracts.
Having a lawyer involved from the start can ensure that your business complies with all state and federal laws. In addition, your lawyer will be able to keep you updated on changes in the law, which can be vital in the early stages of your business. Having a good attorney involved during the first few months of your business can save you from a costly lawsuit down the road.