A question many people wonder about when they start a business is what kind of legal services should they look into. Do they actually need an attorney or can they save their money and use it towards the business? The question to these answers depends on the type of business entity you chose. Continue reading below for more information on legal services when starting a business.
For answers to basic tax questions, visit IRS-EIN-Tax-ID and speak with one of their Gov Assist agents who are ready to help you.
Types of Businesses
Sole Proprietor – This entity is the simplest to form and does not require that you register with your state. Other than business licenses, there is no specific paperwork required as well. So, you likely do not need a lawyer for this type of business.
Partnership and LLC – You must register the business with your state. There are documents that must be prepared. It is a good idea to hire a business attorney if needed.
S-Corporations or Corporation – These business entities must also register with the state. There are documents and bylaws that must be prepared, making them more complicated than the other entities. With any type of corporation, you most certainly need a business attorney.
Estate and Trust Tax IDs
While estates and trusts are not actual businesses, it is advised to have a business attorney for them as well. You can easily apply for an estate Tax ID or for a Tax ID number for a trust after death online on the IRS-EIN-Tax-ID website, however, you will want a lawyer for the more technical aspects that need to be managed.
When starting a business of any type, it can always be beneficial to have a business lawyer to advise throughout the process.