Business Formation Attorneys in Concord, North Carolina

The proper formation of a business will have a significant impact on the short-term and long-term viability of that business and the financial and tax consequences that a business owner may face.

The correct entity for a business venture is as important as the ideas and the people who are behind it. The failure to plan carefully in the formation and reorganization of a business may lead to internal disputes and external legal threats that can reduce profits or can result in the end of the entire business.

When starting your business, it is important to consult with an attorney to help you consider these options. We offer counsel for entity selection and other considerations of business formation. We also provide startup and ongoing consulting to small and mid-size businesses throughout Concord, Cabarrus County, and North Carolina.

Business and Corporate Law Representation in North Carolina

Our lawyers regularly represent our business clients in a number of corporate transactions, including:

• Incorporations for C-corps, S-corps and LLCs

• Partnership agreements

• Drafting and review of contract and leases

• Buy/sell agreements

• Asset purchase agreements

• Dissolution

• Purchase and sale negotiations

Once the formation process is complete, we can provide ongoing legal counsel to business clients. This includes representation for clients in business litigation in the event of shareholder disputes and other types of disputes.

What Are the Legal Requirements for Business Formation?

Starting a new business is an exciting venture, but it also comes with a range of legal responsibilities. Understanding the legal requirements for business formation is crucial to ensure compliance and lay a solid foundation for future success.

From selecting the appropriate business structure and registering your business name to obtaining necessary licenses and permits, each step involves specific legal obligations.

Here, as business formation lawyers located in Concord, North Carolina, we'll outline the key legal requirements for forming a business, helping you set your enterprise up for success from the very beginning:

Choosing a Business Structure

The first step in forming a business in North Carolina is choosing the appropriate business structure. The most common structures include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each structure has its own legal implications, tax considerations, and management requirements.

As business formation lawyers, we can help you determine which structure best suits your needs and long-term goals. Selecting the right structure is crucial as it affects your liability, tax obligations, and overall business operations.

Registering Your Business Name

Once you’ve chosen a business structure, you’ll need to select and register a business name. In North Carolina, this involves checking the availability of your desired name with the North Carolina Secretary of State. Your business name must be unique and distinguishable from existing businesses. If you’re forming an LLC or corporation, you’ll need to file the appropriate formation documents, which include your chosen name.

We can assist you in conducting a thorough name search and making sure your name complies with state regulations.

Filing Formation Documents

Depending on your chosen business structure, specific formation documents must be filed with the state. For an LLC, you’ll need to file Articles of Organization, and for a corporation, you’ll need to file Articles of Incorporation. These documents provide essential information about your business, including its name, address, and details about its members or shareholders.

Our team of business formation lawyers can help you prepare and file these documents correctly, avoiding common pitfalls that can delay the process.

Creating an Operating Agreement or Bylaws

For LLCs, drafting an operating agreement is a critical step. This document outlines the management structure, roles of members, and operational procedures of the LLC. Although it’s not required by North Carolina law, having an operating agreement can help prevent disputes and provide clarity on the functioning of your business.

Similarly, corporations need to establish bylaws, which are internal rules governing the corporation’s management and operations. We recommend working with a business formation lawyer to draft these documents, so you can be certain they’re comprehensive and tailored to your business’s needs.

Obtaining Necessary Licenses and Permits

Every business in North Carolina must obtain the appropriate licenses and permits to operate legally. The requirements vary depending on your business type and location. Common permits include local business licenses, zoning permits, and professional licenses for certain industries.

Getting through the licensing process can be complicated, but our team at the law office of Ferguson Hayes Hawkins, PLLC can help you identify and obtain the necessary permits to comply with state and local regulations. This step is crucial to avoid legal issues and fines that could hinder your business operations.

Registering for Taxes

Another essential step in forming a business is registering for taxes. In North Carolina, businesses must register with the North Carolina Department of Revenue to obtain a state tax identification number. This number is necessary for reporting and paying state taxes, including sales tax, income tax, and employment tax.

Additionally, if your business has employees, you’ll need to register for employer taxes. As business formation lawyers, we can guide you through the tax registration process and help you understand your tax obligations.

Understanding Employer Responsibilities

If your business will have employees, it’s essential to understand your responsibilities as an employer. This includes complying with federal and state labor laws, such as minimum wage requirements, workers' compensation insurance, and employment tax withholdings. You’ll also need to establish clear employment policies and procedures.

We can assist you in understanding and fulfilling your employer obligations, helping you create a positive and compliant work environment.

Maintaining Compliance

Forming a business is just the beginning; maintaining compliance with state and federal regulations is an ongoing responsibility. This includes filing annual reports, renewing licenses and permits, and staying updated on changes in laws that affect your business. Regularly reviewing and updating your business records is essential to avoid penalties and legal issues. Our team of business formation lawyers is here to support you throughout the life of your business, providing ongoing guidance to help you stay compliant and successful.

Why Work With Our Business Formation Lawyers?

Working with a lawyer in the process of forming your business offers numerous benefits. We provide personalized legal advice tailored to your specific business needs, helping you avoid common legal pitfalls and guaranteeing a smooth formation process.

Our firm cares about the success of our community’s entrepreneurs, and we’re dedicated to providing the support and guidance you need to achieve your business goals. From choosing the right structure to maintaining compliance, we’re here to help you every step of the way.

Forming a Nonprofit Organization

If you’re interested in forming a nonprofit organization in North Carolina, the process involves additional steps. Nonprofits must file Articles of Incorporation with the state and apply for tax-exempt status with the IRS. This includes providing detailed information about your organization’s purpose, activities, and financial structure. As business formation lawyers, we have experience in nonprofit formation and can guide you through the process, helping you meet all legal requirements and obtain tax-exempt status.

Addressing Common Challenges

Starting a business can present various challenges, from securing funding to managing operational risks. Legal issues, in particular, can be challenging and time-consuming. Our goal is to help you address these challenges effectively, allowing you to focus on growing your business. We provide comprehensive legal support, helping you overcome any obstacles that arise and getting your business built on a solid legal foundation.

Our Commitment to the Community

As residents of North Carolina, we’re committed to the success of our local community. We understand the unique challenges that entrepreneurs in North Carolina face, and we’re dedicated to providing the legal support needed to overcome them. Our firm believes in building strong relationships with our clients, offering friendly and easily accessible service. We’re not just lawyers; we’re your partners in business, working together to achieve your vision and contribute to the economic growth of our community.

We’re Here to Help Move Forward With Your New Business

If you’re ready to start your business, we’re here to help. Our team of experienced, highly approachable lawyers will guide you through every step of the process, from selecting the right structure to filing necessary documents and keeping you in compliance. We offer personalized legal advice and support, tailored to your unique needs and goals. 

Starting a business is an exciting journey, and having the right legal support can make all the difference. With our experience and dedication to our community, we’re here to help you understand the legal requirements of business formation and set your business up for success. Let’s work together to turn your business dreams into reality.

Contact Ferguson Hayes Hawkins, PLLC today to schedule a consultation and take the first step toward building your successful business. We proudly serve Kannapolis, Salisbury, Albemerle, Harrisburg, Rowan County, Stanly County, and Cabarrus County.