Do You Really Need a Lawyer to Start a Business?

What Does a Business Lawyer Do?

A business attorney is a legal professional trained to understand the laws and regulations of business formation, operation, and maintenance. They can assist with a range of matters, including:

• Selecting the right business structure for your company

• Drafting and reviewing operating agreements and contracts

• Ensuring regulatory compliance

• Protecting intellectual property

• Handling employment issues

• Resolving disputes through negotiation, mediation, or litigation

The attorney’s role is to help entrepreneurs and businesses make informed legal decisions, minimize risk, and help ensure smooth operations from startup through growth. 

Do You Need a Lawyer to Start a Business?

You are not legally required to use a lawyer to launch your company. But you may want to, depending on the complexity of your business. If you’re launching a simple limited liability company (LLC) or sole proprietorship, you can often handle the basics without legal help. If your business involves multiple partners, outside investors, employees, or complex contracts, a lawyer can help you avoid costly mistakes and protect your long-term interests. 

The key is to assess your risk. The more complicated your setup, the more valuable legal guidance becomes. Let’s look at when you can do without a lawyer and when you might want to bring one in.

What Can You Do Without a Lawyer?

If your business is relatively simple, you can often handle the basics yourself or use a filing service like Bizee. While consulting a lawyer is beneficial, here are some tasks you can likely manage without one:

• Writing a business plan. You can draft a basic business plan that serves as your company’s strategic and financial roadmap. The plan should identify your target market, business opportunities and challenges, projected costs and profits, and financing options. 

• Registering your business entity. You can complete your LLC or corporation paperwork with your Secretary of State using its official portal or a service like Bizee. 

• Getting an EIN. You can get an Employer Identification Number (EIN) for free directly from the Internal Revenue Service (IRS).

• Choosing a business name. You can search your Secretary of State’s online business registry and check for trademarks with the U.S. Patent and Trademark Office to ensure your name is unique, available, and legal.

• Filing for basic licenses or permits. For many small businesses, license applications are straightforward and available through your city or state website.

• Opening a business bank account. You can easily set up a business bank account to help keep business and personal finances separate.

These steps are essential to launching your business properly, but they don’t always need legal interpretation or customized documents. 

When Do I Need a Lawyer to Start a Business?

DIY or filing services won’t be helpful in some situations, and you’ll need a lawyer to get started. Hiring an attorney to start more complex businesses can help prevent missteps and protect you from legal risks. You may need a lawyer if you’re:

• Choosing your business structure. While you can choose your business entity type without assistance, a lawyer can explain the differences between the types and recommend the best fit based on your goals, liability concerns, and tax implications.

• Bringing in investors or partners. A lawyer can create well-drafted agreements (e.g., operating, ownership, partnership) that define ownership shares, responsibilities, and profit distribution. 

• Forming a corporation. Corporations generally have stricter compliance requirements and more complicated paperwork. Legal guidance helps you comply with corporate formalities and avoid penalties. 

• Buying an existing business. From contracts to licenses to outstanding liabilities, a lawyer can help you review the risks associated with the purchase and identify red flags.

• Signing a commercial lease. Landlords typically use lease agreements that often favor them and not the tenant. A lawyer can help you spot unfavorable terms and negotiate on your behalf.

• Hiring employees. Federal and state employment laws are complex. A lawyer can ensure you comply with labor laws, create employment agreements, and avoid legal disputes.

• Protecting intellectual property (IP). If you have a name, logo, product, or process that needs trademark or copyright protection, an attorney can guide you through the IP application process. They can also help enforce your IP rights.

Navigating business law, taxes, or contracts without professional help can lead to costly mistakes. Legal support early in the business startup process can save you time and money while giving you the peace of mind knowing you built your business on a legally sound foundation.

Bizee Can Help You Launch Your Business with Confidence

Circling back to the question: Do I need a lawyer to start an LLC or business? The answer is not always. Sometimes,you only need DIY methods or a filing service to get started. At Bizee, we help entrepreneurs form their businesses quickly, accurately, and affordably. We walk you through the steps, handle your filings, and provide tools like EIN registration, customizable operating agreements, and compliance alerts. We have helped more than 1,000,000 business owners get started. Let Bizee take care of the details so you can focus on growing your dream.

Disclaimer

Bizee and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting professional.