Successful Developments: Yours & Mine

Saturday, August 9, 2008

Getting Legal


One of my clients recently asked me what type of business his family should create for a business they wanted to expand. Specifically, they wanted to know how to create an LLC. That is: a Limited Liability Corporation. They were convinced that an LLC is what they needed to protect themselves.

First off, I told them I was not an attorney, nor an accountant... but I knew where they could educate themselves and advised them to consult a local Tax Attorney so their legal paperwork would comply with all the laws and regulations that influence their business.

He knew of several professionals they could speak with... but in the meantime... he wanted to know where they could start. I told him they could review The Company Corporation's web site, where they offer to do all the legal court filings, etc... just by filling out some forms and paying them for an excellent service!

After that, its just a matter of properly filling out the forms in the corporate record book they've sent you and run the business as planned.

As far as getting legal forms and advice... there are many resources, but
Nolo's: Form Your Own Limited Liability Company
definitely stands out in my mind.

But before you decide on a corporate name, you might want to find out if the name is available. Check your Secretary of State (if you live in the U.S.) to see if the name you want... has not been taken by someone who was quicker to think and act than you are. In Alabama... you would check with Alabama Secretary of State and fill out their forms and send them money to reserve your corporate name.

Regardless of what I say... make sure you read everything before you sign. If you are not sure about something... get a professional to interpret the legal jargon for you.

And while you're at it... it wouldn't hurt to ask your attorney to explain how you can avoid "piercing the corporate veil" to avoid getting into possible lawsuits... not to mention problems with the IRS.

Until next time...

Girard Frank Bolton, III.
The Developers Advocate

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