Business formation goes beyond writing up a business plan; organizing cash flow statements and balance sheets only begins to scratch the surface. The legal framework of the industry you’re in also needs to be accounted for. New York law doesn’t require small businesses to have a lawyer. However, consider these advantages you get by building a long-term relationship with a business attorney.
Taxes
Business formation and planning is partly about accounting for the taxes that a business pays. Professionals in law and finance have the skills to reduce the taxes you pay. It’s important to learn the difference between tax evasion and avoidance. The latter protects your business while reducing its financial liabilities.
Liability
Liability is applied to all kinds of things, but overall, it’s the fault you incur as a business. A limited liability company keeps its owners from the consequences of their errors. This is because their company, itself, can be sued by law. The LLC receives the liability and thus limits your personal exposure. As an LLC, you are protected from the liability:
- From a company’s debt
- Against your business-related actions
- From the faults of employees or partners
- Against your personal assets
Contracts
New York attorneys have to prove their skills in creating contractual agreements. Their credentials are in deal-making. They help you produce legal signatures by making your contracts easy to read. Your own contracts might confuse you at times, so having an attorney proofread, edit and reduce your writing improves your work overall.
Analyzing the risk within a business is the same as measuring its potential success. Attorneys give your business a professional examination for this reason.