Businesses Need to Start the Relationship with a Business Attorney Early

Business is competitive and nuanced. You are entering an industry that already has roughly 34 million entities formed and running. The challenges that come with entering this crowded field and attempting to do something new or find new ways of doing old things require meticulous planning and oversight.

As business attorneys, we often don’t hear from businesses until they’re already well down the pathway to litigation or even dissolution. But, we want to let you in on a little secret: getting a business attorney involved early in the process often prevents you from ever having to deal with litigation in the first place. It’s about being proactive as opposed to reactive (and it can save you serious time and money).

Choose the Right Business Entity

Consulting with a business attorney allows you to make the right choices from the very beginning. We’ve previously talked about key differences between business partnerships and joint ventures, why real estate investors need to choose carefully between a Limited Partnership and an LLC, and the risks of not even choosing an entity.

This all boils down to making sure you are choosing the right path for the business goals you have. Different entities have different requirements and provide different benefits and challenges.

LLCs provide personal liability protection but are limited in growth within that structure (some famous companies like Nike and IBM started as LLCs but have since outgrown the model). S corporations provide pass-through tax benefits and asset protection but also require significant nuance and upkeep such as establishing board members and bylaws.

These are just two of a number of entity types business owners must choose from early on. Choosing the wrong entity often means biting off more than you can chew at this stage of business. A business attorney will help you make the right decisions from the beginning.

Don’t Just Rely on the Work of a CPA

Certified Public Accountants (CPAs) play an integral role in the business realm. However, one of the earliest mistakes business owners make is taking legal advice from the CPAs. 

For example, your CPA may recommend your business to be an S-Corp for tax purposes. However, most non-attorney CPAs do not understand the nuances that come with the formation and day-to-day operations of a corporation. S Corps need to operate in a certain manner to reap its liability protection. A failure to operate your business properly exposes you to litigation and often strips the liability protection you earn when working with a business attorney and operating your business properly.

There’s real value in getting a business attorney involved early. You establish that relationship and ensure you are going about your business the right way. You’ve worked too hard to get to this point, so schedule a consultation with Bryant Taylor Law to protect your Florida business.

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