How a Lawyer Can Help Protect Your Business Against Business Incorporation Lawsuits
Business incorporation is the process and the legal procedures which are followed to turn a business into a corporation. When your business undergoes the incorporation process, it becomes a different entity from what it was when it was under an individual or a sole proprietorship. The company is also subjected to different taxation practices than a one-person-owned business. At times, when business owners do not fully understand the laws that govern incorporation, they end up in legal messes which could have been avoided. Here, are a few ways that a lawyer can help you prevent incorporation lawsuits.
Selection of the business name
The name is usually the most common source of legal issues when trying to incorporate a business. Before incorporating a business under a particular name, it is important to ensure that the name is not in use by another business. Lawyers usually know the right places to do this kind of vetting and ensure that the name, logos, emblems and trademarks are specific to the business. When the right name and other qualities are selected, a business can thrive with maximum exposure and profitability.
Choice of the business directors
A business cannot be fully incorporated unless it has a vetted and approved board of directors. The board of directors makes all the important decisions for the company. The common source of disputes here is usually the process which was followed in making the appointments, the qualifications of the appointees, and the rights and duties of the directors. Another related problem is who plays the role of the registered agent to the company. The registered agent has to be reliable, so they do not leave their part somewhere along the road, plunging the company into legal quagmires.
Issues with the articles of incorporation
The incorporation articles are probably the most critical part of the incorporation process. It is the most crucial role which will be played by the business lawyer. They will write down all your incorporation articles, and ensure that there are no errors which could lead to legal issues. If there are disputes related to other aspects of the business, they will ensure they have been resolved before the articles are finalized.
These are some of the crucial roles that the small business disputes resolution attorney will play in ensuring that the incorporation process goes smoothly. Other disputes which they help resolve include securities issues and meetings. With the right lawyer, your transition will be effortless.