Many business owners choose to form limited liability companies without the help of an attorney. Although you do not need a lawyer to form an LLC, hiring one could help you avoid costly mistakes that lead to tax problems, lawsuits and penalties from the U.S. Department of Labor. For example, one important step in the […]
Many business owners choose to form limited liability companies without the help of an attorney. Although you do not need a lawyer to form an LLC, hiring one could help you avoid costly mistakes that lead to tax problems, lawsuits and penalties from the U.S. Department of Labor.
For example, one important step in the process of creating an LLC is to file the Articles of Organization. These are basic forms that contain information about your LLC such as its name, the location of its office, and personal details about the filer. What you may not know, though, is that you could be named in a lawsuit if there is a false statement in the Articles of Organization.
Pursuant to Article 2, Section 210 of New York’s Limited Liability Company Law, if there is a materially false statement in your Articles of Organization, certificate of amendment or other certificate, any person who suffers a loss as a result of reasonable reliance on that statement can claim damages.
If you have questions about business law in New York, contact Solomon Richman P.C. Our corporate lawyers can review your Articles of Organization and help you avoid complications while forming your LLC. Call 516-437-6443 to schedule a free consultation with a business attorney in Long Island.
3 Reasons to Hire a Business Attorney When Forming an LLC
In addition to reviewing your Articles of Organization, a corporate attorney can help you develop an Operating Agreement, create non-disclosure agreements and purchase contracts, and handle other administrative tasks.
Here are three reasons to hire a business lawyer when forming an LLC:
1. Develop an Operating Agreement
If your LLC will have more than one owner, you should develop an Operating Agreement. In New York, there are default rules that govern LLPs that do not have Operating Agreements, but it is best that you create one that is specific to your company.
Your Operating Agreement should be comprehensive and outline the rights and responsibilities of each LLC member and how the company will be managed. An experienced business attorney can help you create a detailed Operating Agreement based on the unique member structure of your LLC.
2. Create Non-Disclosure Agreements
When it comes to protecting your competitive strategies and intellectual property, a non-disclosure agreement is your first line of defense. Business owners can benefit from using NDAs when training employees, forming partnerships, or hiring independent contractors.
3. Avoid Tax Problems
When filing taxes, it is very important that you correctly distinguish independent contractors from employees. If you misclassify a worker, you could face penalties from the Internal Revenue Service and the U.S. Department of Labor. A corporate lawyer can explain the legal differences between independent contractors and employees, and help you avoid other complications related to labor and tax laws.
If you are planning to form a limited liability company or limited liability partnership, turn to Solomon Richman P.C. for legal guidance. Call 516-437-6443 to schedule a free consultation with a business attorney in Long Island.