As the pandemic wore on, millions of people started reconsidering their careers and bowing out of their jobs. Thus, we saw the Great Resignation. While some people switched careers or simply retired, many decided to try entrepreneurship and launched approximately 5.4 million new businesses in 2021.

For aspiring small business owners, there is a lot of potential legal paperwork depending on the type of business. That leaves you in the position of deciding whether you want to hire a business formation lawyer to start a business.

If you're thinking of launching a business, keep reading for a breakdown of what you need to know about hiring a lawyer for business start-ups.

Paperwork, Part 1

Most business owners must file a lot of paperwork. Some of the more common types of paperwork you need to file include:

    • Business registration with the state
    • Corporate or LLC documents
    • Employer identification number applications
    • Business license application
    • Business permit applications

On the whole, aspiring business owners can handle most of this paperwork unaided with a bit of time and effort. However, putting together your corporate or LLC documents is a potentially different matter.

Paperwork, Part 2

While there is a substantial amount of paperwork you can do on your own, there is a significant portion where the services of a lawyer or firm, such as, could prove helpful.

A good business lawyer can help you settle on whether a corporate structure or LLC best serves your needs. They can also help you pick between the various corporate structures.

Business formation lawyers can also help you put together partnership agreements and employee contracts. A lawyer can also review important paperwork like lease agreements or property purchases.

In some cases, they may even provide limited tax advice, although you should also consult with a qualified financial expert like a tax lawyer or accountant.

Protect Your Business

Most businesses should have a working relationship with a business lawyer to help protect their business. For example, businesses that do software development often need help protecting their intellectual property.

Many small businesses find themselves on the wrong end of a lawsuit. Having a lawyer already can help you settle or even avoid these lawsuits.

Depending on what kind of business you're in, you may even need help to stay compliant with state or federal regulations. Micro-breweries, for example, must comply with federal laws regarding production and distribution.

Do You Need a Business Formation Lawyer?

The question of whether you need a business formation lawyer isn't a straight "yes or no" question. Some sole proprietorships can realistically get away without using a lawyer.

In many cases, though, it's both necessary and wise to hire a lawyer. Lawyers can help you stay on the right side of state and federal business law. They can also draft paperwork for you.

In worst-case situations, they can defend your business from lawsuits or even file lawsuits to protect your assets.

Looking for more business management tips? Check out our Business section for more posts.