What kind of lawyer do I need to start a business in New York?
Having a lawyer on your side is an essential first step when starting your own business. The best type of attorney is a business attorney for addressing legal matters for small businesses in New York. This type of attorney is very knowledgeable in various business law topics that will apply to your business. They can help those looking to begin a business or face a business dispute involving their current small business.
What kind of business entity do I need for my small business?
When beginning a business in New York, you must decide what form of business entity to establish. The business entity type depends on many factors. Your business formation determines which income tax return form you have to file. The most common business formations are the sole proprietorship, partnership, corporation, and a limited liability company (LLC).
Sole Proprietorship: A sole proprietorship is an unincorporated business that a single individual owns.
Partnership: A partnership is a business formed between two or more individuals. Each individual contributes money, property, skill sets, and shares in the business’s profits or losses.
Corporation: A corporation is a legal business entity compiled of a group of people authorized to act as a single entity or “legal person” by the law.
Limited Liability Company (LLC): A limited liability company establishes the business as its legal entity, leaving a business owner not liable for company debt or other personal responsibilities. The business structure is US-specific and may vary from state to state.
How do I protect my business?
As a business owner, it’s your responsibility to do everything within your means to limit risk and keep the business running smoothly. Having an experienced New York business attorney on your side is an excellent first step for protecting your business. A business lawyer can help you protect your business by putting it into a trust or other legal strategies to protect your personal assets if your business is sued. A business attorney can also help you establish critical legal documents like liability insurance and other agreements to protect your business.
What kind of legal agreements are used for business?
As a small business owner, there are many types of business contracts that can help protect your business from being sued. Some of the most common business agreements include:
Operation Agreements: This type of agreement is for LLCs and addresses financial and functional decisions, including rules, regulations, and business provisions.
Partnership Agreements: This agreement describes the ground rules of the LLC operation, the terms and conditions of the business, and protects the legal rights of the owners.
Employee Agreements: This agreement addresses the relationship between the business employees and employers to disclose the rights, responsibilities, and obligations of both parties during employment.
Buy/Sell Agreements: This is a legally binding contract that outlines how a business’s share may be reassigned or sold if a partner passes or leaves the business.
Lease Agreements: This document address the relationship between a landlord and business for the rental of a property.
Is an operating agreement needed for a limited liability company?
When forming an LLC in New York, a key document used is an operational agreement. This document is vital because it outlines the financial and functional decisions, including rules, regulations, and more, for the small business.
An operating agreement protects a small business’s LLC status.
- The legal agreement gives members of the LLC protections from being personally liable to the LLC. Without this agreement in place, your LLC can resemble a sole proprietorship or partnership, which can threaten your personal liability.
- This document clarifies verbal agreement. This is important to establish to avoid miscommunications between members. Documenting operational conditions and other arrangements in writing can help a small business in future conflicts.
- Operational agreements protect your small business in the eyes of the state. The state will create default rules to govern LLCs without an official operating agreement. Each state has outlined its default rules that apply to businesses that do not sign operating agreements.
If my business is sued, will my personal assets be at risk?
Suppose you’ve set up a business entity for your small business, like a limited liability Company (LLC). In that case, you will personally not be at risk of losing your home, vehicle, personal accounts, or other assets not owned by the LLC. Your small business LLC will be liable for any damages if your business is sued instead of your personal assets. If you work with an experienced business law attorney, they can help you create a business formation that protects your assets from a business lawsuit.
What is business succession planning?
Business succession planning is creating a plan for another individual to either own or run your small business after retirement, if you become disabled, or pass away. Succession planning is the process of passing control of the business to others. The legal guidance of an expert business lawyer, like Russo Law Group, can help you through the steps of business succession planning in New York.
Do I need a lawyer if I sell my business?
Consulting with an experienced business attorney, like the Russo Law Group team, is a vital first step when selling a business. The process of selling a business in New York can be very complicated and requires a strong understanding of New York business law and local law.
The help of an expert business lawyer can guide you through the selling process steps and ensure you have obtained all necessary documentation for the sale of your small business. Also, a business attorney can represent your interests in court if issues arise.