Business Formation Attorneys in Dayton, Ohio
Starting a new business can be exciting and rewarding, yet challenging. A crucial step toward setting your business up for success is choosing the right structure and creating a firm legal footing. By laying the right legal foundation, you can improve your chances of success, protect yourself from personal liability, and mitigate potential losses. If you are planning to start a new business, consulting with knowledgeable Ohio business law attorneys is imperative for proper guidance.
At Duwel Law, we are poised and ready to guide prospective entrepreneurs and business owners through the complexities of business formation. We're available to discuss your unique business goals and explore your legal options. Whether you’re just starting out or already a seasoned entrepreneur, our team can lead you through every legal step involved in forming a new business and help you make wise decisions.
At Duwel Law, we proudly serve clients in Dayton, Ohio, and throughout Montgomery County, Miami County, Greene County, Darke County, and Warren County.
Choosing a Business Structure
Choosing a business entity or structure is essential for every business owner. However, the type of structure you choose for your new enterprise will have a significant impact on many different aspects of the business. Depending on your unique needs and business goals, here are some common business structure options:
Sole proprietorship is the most basic form of business organization. A sole proprietorship is a form of business that is owned and managed by one person. In a sole proprietorship, no legal distinction exists between the business owner and the business entity itself.
Furthermore, the business owner — also known as the sole proprietor — will oversee business operations, take all profits, and pay all taxes. However, both the sole proprietor's personal and business assets are exposed to potential liability.
A partnership is an arrangement between two or more people with a unified goal of making profits. The partners will serve as the business's co-owners, oversee business operations, and share profits and losses. The partners can also be held liable for all debts, liabilities, and actions taken by the partnership.
A corporation is a legal entity that provides liability protection to its directors, shareholders, and officers. Corporations have strict tax requirements and high administrative costs. In most cases, only the corporation itself will be held liable for corporate liabilities, debts, or negligence.
Limited Liability Company (LLC)
A limited liability company is a business entity that protects its owners (or "members") against personal liability or debts. In an LLC, the members will not be held personally accountable for the company's debts and liabilities. Today, a lot of startups and small businesses in the United States now opt for LLC as their business type, due to its flexible structure.
Establishing the Necessary Contracts
Businesses often perform transactions with other individuals and businesses. When going into business with another person or entity, establishing a contract is crucial to protect your business, provide clarity, and mitigate potential disputes. Here are some common contracts to draft for your new business enterprise:
General business agreements that are specific to your industry
LLC operating agreements
Assignment of inventions agreements
Confidentiality, non-disclosure, and non-circumvention agreements
An experienced attorney can educate you about the different contracts and agreements you need when starting your business and help you navigate key decisions.
The Importance of Contracts
Having a properly drafted contract is important due to the following reasons:
Contracts help clarify business relationships, agreements, and the rights and responsibilities of all parties.
Contracts help prevent errors or misinterpretations in both transactions and communications.
Contracts help to extend your brand and business values.
Contracts help prevent or mitigate potential disputes, lawsuits, or conflicts, and reduce risks and losses.
Contracts help businesses generate more revenue and increase operational efficiency.
Contracts allow businesses to establish dispute resolution techniques, either through settlement meetings, mediation, arbitration, or litigation.
Contracts help in protecting business assets, intellectual property, and real property against potential liabilities.
A skilled business formation attorney can help draft, review, and negotiate contracts, inform you about the contents and wordings of a business contract, and help mitigate possible disputes and liabilities.
Filing Necessary Taxes
Business owners in Ohio and other areas across the United States must file taxes every year. Depending on your business entity or structure, some common taxes to pay include:
Sales and use taxes
Other federal, state, and local taxes
A knowledgeable attorney can help obtain your federal and state tax ID numbers and make sure you file your taxes on time.
Licenses & Permits
In order to sell products, offer services, or otherwise operate your business legally in the state of Ohio, you must obtain the required licenses and permits. Depending on your industry, you may need to apply for licenses and permits at both the federal and state levels.
Business insurance policies are designed to protect business owners, entrepreneurs, and partners from the potential costs involved with operating a business. Here are some common types of business insurance your company may need:
General liability insurance
Workers’ compensation insurance
Product liability insurance
Commercial property insurance
Professional liability insurance
Home-based business insurance
Business income insurance
An experienced attorney can enlighten you about the coverage under each policy and determine the best way to protect your new startup venture from exposure to potential liability.
Work with Experienced Business Formation Attorneys
Business formation in Ohio usually involves a lot of complex processes. Choosing a business structure, creating contracts, agreements, and legal documentation, applying for licenses and permits, and filing required taxes can make the whole business formation process even more overwhelming and complicated. It is important to work together with an experienced business formation attorney for detailed guidance and to establish a solid legal foundation for your new business venture.
At Duwel Law, we're committed to offering knowledgeable legal guidance and advocacy to clients in business law matters, including business formation, construction defense, contract review & negotiation, and transactional business services. Our legal team will work diligently to understand your specific business needs and goals.
Additionally, our attorneys can educate you about the various business structure options and determine what is right for your new enterprise. We can help draft, review, and negotiate your business contracts, apply for licenses and permits, and file taxes when required. Using our in-depth knowledge, we will guide you through every stage involved in the business formation process and work to set your business up for success.
Business Formation Attorneys Serving Dayton, Ohio
If you need guidance when starting your new business venture, contact us at Duwel Law today to schedule a consultation. We can offer the detailed legal counsel and advocacy you need to navigate the early development stages of your business. We proudly serve clients in Dayton, Ohio, and throughout Greene County, Miami County, Montgomery County, Warren County, and Darke County.