When you’re just getting started setting up a new business, it is very important to hire the right professionals to help you navigate each step. Two of the most important professionals to consider are an attorney and an accountant. They will both be able to provide valuable advice to reduce risk and maintain in good standing with the government. However, just as you wouldn’t ask an attorney to do your taxes, you shouldn’t have an accountant set up your LLC. Here’s why:
- Training. Accountants are not trained in legal analysis or laws outside the IRS code. To be effective in their area of expertise, they think in terms of finance, numbers and calculations. Attorneys look at requirements, precedents, long-term implications and risk reduction strategies.
- Documentation. Most states carry a clause that allows for “piercing of the veil,” or forfeiture of protection if various additional steps are not taken. Those steps can vary by state, and can be confusing to navigate. An attorney can advise you of these steps and help you implement them.
- Client education. An accountant might understand how to set up an LLC, and “file the right paperwork” for you. However, the right paperwork isn’t the same for each business and you might be at risk if it is not correct. An attorney can advise you on what might happen under certain scenarios as your business grows, and be able to assist you if these scenarios actually occur. Have you filed the necessary documents to protect your business from risk? For example, if you are going into the business with a partner, what happens if one of you wants to leave the business? What if your business becomes involved in a lawsuit? These are situations that will require the advice of an attorney.
- Operating Agreement. If you form as a LLC, you will need an operating agreement. This is important in defining how your LLC is set up as well as what roles different members play. It also states how you will handle disputes between the members if they arise. Without this agreement, you could lose the risk-reduction protection that an LLC offers. An attorney can help you create this agreement, with an accountant you’d be on your own to complete this important step.
There are enough unknowns when starting your own business, be sure that your LLC protection has the legal foundation to protect you and your personal assets should risk arise. While an accountant provides invaluable information when it comes to financial matters, consult with an attorney that has experience setting up LLCs, like the team at LexLaunch.com, when it’s time to determine your business structure.
Save time and money without the risk by using LexLaunch.com to set up your LLC at a fraction of the cost of typical hourly attorney fees. Contact them today by calling 816-434-6610 or click here for more information.