Business Startup and Company Formation Concerns
You developed a new business concept and an innovative marketing plan. You want to raise money to accelerate your start-up and launch the business. One day you hope to franchise your concept and by now you realize that you need startup capital. You learned from the bank that you do not qualify for a small business loan. And, you were turned down for funding by seed capital investors because of lack of operating history and current revenue. The seed capital investors recommended that you try to raise your initial round of financing from your personal resources including friends and family.
You have operated your business as a sole proprietor. Your CPA advised you to contact a business lawyer to form a limited liability company. You wonder whether you really want the administrative burden of forming and operating a separate company.
How Many People Seek Legal Expertise
You contacted several lawyers that told you your business formation needs were too small for their practice and would be expensive, so you have been looking at on-line resources to form your new company.
What About Online Legal Services for Business
Online legal document generation and legal DIY is a booming business. Some online providers will connect you with an attorney, usually for an additional fee. In effect you will trust your future to an anonymous source of information and hope that they’re familiar with the nuances of your industry. And, usually there is a follow up question that comes up after that conversation, but by the time your question pops up you may then talk to a different lawyer and start your story from the beginning.
Templated Contracts May Not Be One-Size-Fits-All
Litigation or other disputes may arise because of using ineffective forms and contracts found online or misuse of forms found as fill in the blank models. Consumers have little recourse if a problem is encountered because of using one of these forms. And, fixing these issues may result in economic loss as well as take much time away from operating your business. These are headaches you do not need.
An experienced business lawyer can help avoid some of the gaps and pitfalls encountered because of the use of online legal documents.
Forming a Business The Right Way
Limited liability company formation and other entity formation can be accomplished quickly and economically. Let me say first that consultation with a CPA or your other tax advisors should be considered essential to determining the appropriate form of entity to best position you and your business from a tax and accounting perspective. This consultation together with an experienced business lawyer can ultimately save you money.
In my experience there is always something unique or special about launching a new business. An experienced attorney can help take the mystery out of the process, allay your concerns and help position your business for a clean start.
Also, in my experience this is as much important in a friends and family fund raise as in any other. Failure to properly document the relationships among friends and family in a business arrangement can make holiday get-togethers very awkward.
You want your relationships with your funding sources whether they are friends and family, seed capital investors or other sources of funding to be open, honest and based on a sense of mutual respect and trust.
You want your relationship with your lawyer to be the same.
Take the necessary steps to position your business for success. Do so by knowing your options and understanding the difference between an established, competent Texas lawyer and other service providers. To get started, contact our office today and speak with an experienced Dallas business attorney.