Choosing the right legal entity to secure funding can help you avoid lawsuits and other liabilities that could sour your business. It will also help you keep your personal and business assets separate.

Getting a lawyer to set up a business entity

Getting a lawyer to set up a business entity is not always necessary, but it can be helpful. A lawyer will help you avoid making mistakes that can lead to legal problems later on. An attorney can also show you the effects of different options, so you can make the best decision for your business.

When you want to form a business, you will need to apply for an employer identification number from the Internal Revenue Service (IRS). This number is needed for filing income taxes, as well as for opening a bank account for your business. You also need to get a state sales tax identification number. You can apply for this number online. In order to set up a business entity, you will also need to file organizational documents with the state, and pay a filing fee. If you are not going to have employees, you are not required to get an EIN, but it is a good business practice.