Once I visited a law firm in Bangkok to try and understand why most people look for lawyers when they want to start a business. I had a friend who was asking for the best lawyer. At first, I thought she was in trouble until she confirmed to me that she wanted to start a business so she needed some legal advice. Here are the information I gathered and I would like to share it with someone like me who is not sure about the importance of legal advice for a startup.
Most businesses need contracts for physical location, services and supplies. Businesses make agreements with investors, partners, and employees so it is important to get everything right so that you don’t find yourself in court.
Some businesses need to register with the state so that they can be recognized. If it is not necessary for the business to register, they will still need to obtain permits and licenses.
- Multi-state business
The conditions that come with conducting a business entity in one state differ from one state to another. If you don’t get the right legal advice you might find yourself in trouble with the authorities if you use the same conditions in another state.
- Business form
The choice of the business form you will use ( i.e. sole proprietorship, partnership, corporation, or LLC) will always dictate the legal conditions and potential liabilities of the people that are involved, and the way they will operate. When you choose the wrong entity you will end up becoming liable for the wrongs of your partners or your employees.
A business needs to raise money, keep the financial and distribution records and behave in a financially responsible way. Different businesses require different procedures for raising capitals and handling distributions.