When you are about to start a business, you must be aware of several essential things. You might be an expert in your business, but you will need the help and advice of an experienced attorney. You may need more than one lawyer right from the beginning depending upon the nature and size of your organization.
First things first
Registration of your business as a separate entity is vital if you want to reduce your liabilities. You can incorporate your business as a limited liability partnership (LLP) or as a private limited company (Pvt. Ltd.). You will need a corporate lawyer to handle the process irrespective of the entity that you choose.
What can they do for you?
A reasonable attorney will give you all the information you require to set things in motion. You will need to draft articles of association and many other vital documents before you start. So, it is best that you hire an excellent advocate to do the job for you. Doing it yourself might be risky because you may not have the drafting skills which an experienced lawyer will bring to the table.
Get to know the pros and cons
You must ask your lawyer about the benefits and demerits of choosing one form of registration over another. You can even start your business in the form of a sole proprietorship if it suits your needs aptly. C corporations, LLCs are other formats in which you can get things going. It is vital that you know all about them so that you can select the most suitable size for your business.
Do not lose your assets
When you start a business, you must turn it into a separate legal person. If you tread along this path, you can rest assured that your finances will never come into the scanner. You will own a part of your business, but if things go wrong, then you will not have to make up by selling personal assets. In the case of sole proprietorships, you do not have this advantage. Hence, all good lawyers will tell you to avoid this method.
Extent of liability
Your lawyer will also tell you about the ideal division of responsibilities between all the partners or directors, as the case may be. The scope of liability among partners is also decided by mutual understanding between all the stakeholders in the new venture. You must get it done fairly and reasonably.
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