Do I Need a Lawyer to Set Up a Business?

When you’re starting a business, you’ll face countless decisions — from choosing a name to opening bank accounts. One of the most common questions entrepreneurs ask is: Do I need a lawyer to set up my business?

The answer is: not always. But having legal guidance can make the difference between a smooth launch and costly mistakes later.

When You Might Not Need a Lawyer

Some very small businesses can get by with a do-it-yourself approach at the start. If you’re:

• A sole proprietor offering freelance services,

• Running a small side hustle with minimal risk, or

• Comfortable using state-provided forms for a basic LLC filing,

…you might not need full legal support at the very beginning.

But even then, it’s important to understand the limits of DIY formation — because what works today may create problems as you grow.

When Legal Guidance Becomes Essential

1. Choosing the Right Entity
   LLC? S-Corp? C-Corp? Your choice affects taxes, liability, and future fundraising. Filing the wrong structure can cost thousands to fix.

2. Adding Co-Founders
   If you’re starting with partners, you’ll need agreements to cover equity splits, decision-making, and exit scenarios. Without them, disputes can derail your business.

3. Protecting Your Brand
   A lawyer can help check whether your business name or logo is available and advise on trademark protections.

4. Drafting Contracts
   Handshakes and verbal promises won’t protect you. Solid contracts with clients, vendors, and contractors are a must.

5. Compliance and Licenses
   Depending on your industry, you may need permits, privacy policies, or employment law compliance. Missing one can result in fines or liability.

The Value of a Lawyer at Startup Stage

Even if you don’t need full-time legal support, consulting a lawyer early can:

• Save you from costly mistakes,

• Give investors confidence in your structure,

• Provide peace of mind as you grow.

How Liermo Law Helps Startups

At Liermo Law, we make startup legal services accessible through:

• Flat-fee entity formation → predictable pricing for LLCs, corporations, and partnerships.

• Founders’ agreements, contracts, and compliance checkups → to protect your business from day one.

• Subscription-based corporate counsel → ongoing legal support as your company grows, without the full-time cost of in-house counsel.