Company Formations Advisors Worldwide.

Yes, because making the wrong choice now can cost you a fortune in taxes or lost investment later. An LLC is usually best for small businesses or “lifestyle” companies because it is flexible and avoids double taxation. However, if you plan to raise money from Venture Capitalists, they will almost always demand you be a C-Corporation (specifically a Delaware C-Corp) because their internal rules often forbid them from investing in LLCs. A lawyer looks at your 5-year plan to ensure your legal structure matches your financial goals.

These are essentially the “birth certificates” of a company, but the terms depend on where you live. In the US, you file Articles of Incorporation (or a Certificate of Formation for LLCs) to bring the company into existence. In the UK and many Commonwealth countries, you need a Memorandum of Association (stating your intent to form the company) alongside the Articles of Association (which set the internal rules). While the names differ, both serve the same purpose: proving to the government that your business is a legal entity.

Absolutely; this is the specific document that saves friendships and businesses when things get tough. A Shareholders’ Agreement acts like a “business pre-nup” that answers hard questions before they happen: What if one friend stops working but wants to keep their salary? What if someone gets divorced and their ex-spouse gets half their shares? Without this agreement, you might find yourself stuck in business with a friend’s ex or unable to fire a co-founder who has checked out.

Yes, lawyers frequently set up companies in Delaware even if the founders live elsewhere, but they will warn you about the “double fees.” Delaware is the gold standard for startups because its court system is incredibly business-friendly and predictable. However, if you open a coffee shop in California but incorporate in Delaware, you have to pay taxes and registration fees in both states (registering as a “foreign qualification” in your home state). A lawyer helps you decide if the prestige of Delaware is worth the extra annual cost.

A Registered Agent is a person or service designated to receive official government mail and lawsuits (Service of Process) on your behalf. You legally must have one listed on public record so the state knows where to find you. While you can technically be your own agent, most lawyers advise hiring a professional service. Otherwise, if you get sued, a sheriff could walk into your office and hand you legal papers in front of your customers or employees, which is embarrassing and bad for business.

Lawyers use “vesting schedules” to protect the company from a founder who quits early. The industry standard is a 4-year vesting schedule with a 1-year cliff. This means you don’t actually own your full stake immediately; you earn it over time. If a co-founder leaves after 6 months (before the “cliff”), they walk away with zero shares. This prevents a scenario where someone quits after two weeks but still owns 25% of the company forever, making the business “uninvestable” to future partners.

Incorporating is just the first step; you also need permission to operate. A lawyer identifies the “stack” of licenses you need, which varies wildly by location and industry. This includes federal permits (for things like alcohol or firearms), state licenses (sales tax permits), and local zoning or health permits (for physical storefronts). Missing even one of these can lead to your business being shut down by the city or fined heavily for operating illegally.

This is a critical step that many founders forget. When you write code or design a logo before the company is formed, you own it, not the company. A lawyer drafts an “IP Assignment Agreement” to formally transfer that ownership from you personally to the new corporate entity. Without this paper trail, investors will not give you money because the company doesn’t actually own the technology it is trying to sell.