What an attorney can do for your new business
Colorado entrepreneurs excited about the opportunity to launch a new business venture should learn why it is important to work with a lawyer at this time.
As the oil & gas industry in Colorado continues to expand, more and more new businesses may be established. The highly regulated nature of the energy industry brings unique challenges to the table for businesses. Understanding these thoroughly is mandatory for any new oil and gas venture to succeed. From employment laws to regulations handed down by the Federal Energy Regulatory, there are many areas requiring compliance for new businesses. Following are just a few of the areas in which an attorney can provide valuable assistance.
Operational model choices
Companies can be created in many different ways and no one model is right for every business. Even if personal liability protection is a primary goal, there are multiple options for structures that can provide that. Business News Daily explains that all of the advantages and disadvantages of a particular model must be factored in when making this decision. It may well be that while the liability protection offered by an LLC is attractive to one company, the taxation model is not.
A business lawyer can work with entrepreneurs to understand their business needs and goals and then match those to the structure that best meets all of those. The same lawyer that advised on structure choice can also draft and file all appropriate documentation required to establish the company.
An oil and gas company may well need to enter into agreements with vendors, subcontractors, employees and other entities. When these contracts are not carefully prepared under the watchful eye of an attorney, serious problems can result down the road. These problems may even put a company’s existence in jeopardy.
Choosing a name that sounds good is far from all that is required when setting up a new business. According to the U.S. Small Business Administration, registration is required for every company name. This may seem simple but before that happens an attorney should be used to perform a comprehensive search ensuring that the chosen name is not already in use or trademarked by another entity. This is an important way of protecting a company from being sued.
Taxes and licenses
In addition to federal taxes, the state and even different municipalities may assess their own taxes on companies. There can also be special licensing requirements for each of these entities and zoning regulations that must be adhered to. A lawyer well-versed in the oil and gas industry in Colorado will be aware of all of these laws and know where to look to ensure that nothing is missed in the process.
Legal input always important
Starting a business should always be thought of as a legal endeavor as well as a financial one. Anyone looking to establish a new business in Colorado should contact an attorney for help in setting up the business to mitigate risk and provide a good start to the company’s future.