A good business owner knows the importance of efficiently running and managing the operational aspects, as well as the legal side, of a business.  Incorporation attorneys add value to the business enterprise because they not only provide legal guidance but also dispense strategic advice.  Their knowledge and expertise on small business law should help entrepreneurs establish their businesses, grow, and succeed.

Establishing a Small Business and Small Business Law

Establishing a small business has its advantages and disadvantages.  Seeking professional legal advice and a better understanding of the different structures of business entity formation are essential tools that will assist entrepreneurs in choosing the best possible model to help them achieve success in their business endeavors.  There are four main types of business structures:  sole proprietorship, partnership, LLC (or Limited Liability Company), and corporation.

A sole proprietorship is owned and operated by one individual, while a partnership is run by two or more individuals.  Although a Limited Liability Company is not a corporation, it provides its owners with the same benefits accorded to an incorporated entity.  A corporation is recognized by law as a legal entity, which means it can enter into contracts, sue, and be sued.

When business owners decide to incorporate their company, a Los Angeles business lawyer can recommend the best corporate structure to adopt as their framework.  Incorporating a small business can provide the entity with adequate legal protection.  It also grants owners and shareholders limited liability with regard to debts incurred by the company.

There are two primary types of corporations: C Corporation and S Corporation.  A C Corporation is a legal structure wherein the profits earned are taxed separately from its owners or shareholders.  Under an S Corporation, earnings are distributed among shareholders, who are then taxed based on their returns.

Los Angeles Business Lawyer

Hiring a business lawyer Los Angeles can specify the various advantages and disadvantages of each corporate structure, and guide entrepreneurs in making the right decision for their business.  An incorporation attorney will also handle all the necessary paperwork required in incorporating a business enterprise.   Aside from filing the articles of incorporation, business lawyers prepare stock certificates and stock ledgers, as well as draft the minutes of meeting between owners and shareholders.

A corporate lawyer can also be beneficial to business owners when they enter into contracts with other parties.  A Los Angeles business lawyer can draw up and scrutinize contracts to ensure that the terms and conditions stated therein go hand in hand with company goals.  Incorporation attorneys can also conduct business negotiations on behalf of the company.

A business lawyer Los Angeles registers the business for an employer identification number.  An employer identification number is issued by the IRS and consists of a nine-digit number.  This number is issued to business entities that are mandated by law to provide tax statements and submit employment taxes.

Corporate lawyers can also bring into the business important advisors, such as a certified public accountant and an insurance broker.  The role of an accountant is related to the financial aspect of the business.  This includes financial report preparation and financial data management, as well as preparing and filing annual business tax returns.

Watch this video here to learn more about small business law – www.youtube.com/watch?v=_ajnPW9ULpk.

Gale & Vallance Business Lawyers Los Angeles