3 Things A Corporate Lawyer Will Help You With When Starting A Corporation
Starting a business can be exciting and profitable, but it can also be confusing, especially if you want to set up your business as a corporation. To make sure you set it up properly, legally, and thoroughly, you should hire a corporate lawyer. A corporate lawyer can not only help you complete all the steps, but he or she will also make sure every step is handled properly. Here are three of the important steps you must do when setting up a corporation, and performing these accurately will be easier if you have the help of a corporate lawyer.
Prepare All The Paperwork
Setting up any type of business structure will require filling out a lot of paperwork, but setting up a corporation usually requires the most paperwork. One of the first steps is choosing a name for your company. This name must be unique, and it may take some research to find the right name that is available for use. If you tell your lawyer, someone from a place like Carter & West Law, the name you would like to have, he or she can research it to find out if it's available. If it's not, the lawyer can offer some suggestions of available names that are similar.
There will be many forms to fill out, and you may not be able to fill them out until you have completed the other steps. In addition, there will be fees you must pay to get your new company incorporated. The fees will depend on your state, and the costs are typically between $500 to $700. This does not include the fees your lawyer will charge. In addition to filling out forms, you must also include a copy of your corporation's bylaws and a list of the initial directors of your company.
Choose And Create The Directors Of Your Corporation
To start a corporation, you are legally required to have appointed directors. As the owner of this company, you could choose to be a director; however, you do not have to be. Your lawyer will help you understand how many directors you will need, and this will depend on the state your business is in. You may need only one director, or you might need to have many.
The directors of the company are there for specific purposes, and here are some of the roles and responsibilities they will have for your new company:
- Make financial decisions
- Authorize selling of stock
- Appoint corporate officers
- Set salaries and bonus amounts
- Approve loans
- Create rules and guidelines for the business
- Manage budgets
The directors of a corporation have the primary goal of protecting stakeholders of the company. The members of the board will get paid for their jobs.
Write The Bylaws Of Your Corporation
The other important task your lawyer will help you with is writing the bylaws of your new corporation. The bylaws for your corporation outline several key things about your company. This includes determining the rights, duties, and responsibilities of the officers and directors, and it should also include the following types of details:
- Basic company information – The bylaws usually start by stating the name of the company, the names of the owners, the location, and the purpose of the business.
- People involved – The bylaws will also list the names of the board members and their duties and responsibilities.
- Rules – Most bylaws also state rules relating to the business, especially when it comes to making changes to the bylaws.
Once the bylaws are created, they will stand as a reference when problems arise or when there are questions about the way the business is being run.
Setting up a corporation on your own is possible; however, it is not the best way to handle this. It is better to invest in hiring a lawyer for help, because this will ensure that the business is started properly from the beginning. If you have questions, contact a corporate lawyer today.