If your business is expanding and you are considering forming a corporation, you obviously have a long list of things you need to go over to make sure the transition is smooth from your current sole proprietorship or partnership. One of the best things you can do for yourself and your company in this situation though would be to hire a corporate lawyer to help you with said transition and the days that follow. Here are three ways that a good corporate lawyer can help you.
Assistance with Proper Structure and Setup
When you create a corporation, you will have to answer a lot of questions about the overall structure of your business and your answers will help determine things like your tax liability, possible red tape due to government regulation and so on. A corporate lawyer has years of experience helping numerous other companies get off the ground and will know precisely the best way to structure your business within your current state for maximum profitability.
Redoing Current Contracts
When your company changes into a corporation, this could have an effect on your current business relationships with customers, clients and other companies. For starters, you might need to update the name you list on all of your contracts to reflect that you are now a corporation instead of a sole proprietorship. In some cases, you might have to reach out to a client to get them to agree to the changes but a lawyer will help you minimize the amount of disruption this change causes for your partners and customers.
The lawyer can also help you create a new template for your future contracts, using the corporation's identity as a starting point.
Streamline the Process for Employees
A change from a sole proprietorship to a corporation could also have consequences for your current employees. Your lawyer can help you structure the changes in a way that will minimize issues, but you'll also have someone on your side who can point out things you need to change like perhaps a certain set of guidelines in the company handbook. If this business expansion and reclassification will also come with additional perks for your employees like health care coverage or a 401k match, your lawyer can help you get these things right the first time around.
Contact a local corporate lawyer today before you officially transition your sole proprietorship into a business
