Starting a business is an exciting venture. Yet, there are also many risks involved. Fortunately, working with an attorney can help you identify many potentially avoidable threats so that you can effectively prepare. Set your new company up for success by asking these four important legal questions. 

What to Ask Your Attorney When Starting a Business

What business structure should I choose?

One of the first steps in launching a new entity is selecting a legal structure. There are four main options: sole proprietorships, partnerships, corporations, and limited liability companies (LLCs). The structure you choose will affect the day-to-day operations of the company, along with the tax status and level of owner liability involved. For that reason, it's vital to work with a lawyer that can help you understand the long-term impact of the decision.

Do I need a business license?

While business laws vary by location and industry, most companies are legally required to obtain official licensing before operations can begin. In Alabama, privilege licenses are issued by local and county governments, but some industries need additional permits provided by state-wide organizations. 

Typically, companies are required to have already chosen a business structure, filed for EIN, and obtained the necessary certifications. Once completed, you can apply for a local business license. An attorney can review all the local, state, and federal requirements specific to your industry to ensure you're able to operate legally. 

What employer regulations do I need to know?

If you plan to hire others to work for you now or in the future, it's important to be up to date on the latest local, state, and federal employment laws. Such regulations mandate multiple aspects of running a business, from wages to shift lengths.

Most states also require companies to carry worker's compensation insurance. Being aware of these obligations is essential to avoiding costly fines, fees, and employee legal claims. 

What protections should be included in my contracts?

Verbiage is key to crafting contracts for employees, clients, and contractors. A correctly written document is the best way to protect the financial future of a business. However, it's challenging to complete the process without in-depth legal knowledge. That's why a legal professional is a necessity when drafting new contracts.

Start your business off on the right track by reaching out to Lee, Livingston, Lee, Nichols & Barron in Dothan, AL. Since 1948, this local law firm has fought for the rights of residents and businesses across Dale, Henry, and Houston counties. Learn more about their business law services online, and request a personalized consultation at (334) 792-4156.