Starting a new business is a daunting prospect. There are a multitude of issues that all must be dealt with simultaneously. You have to have the idea and the concept for your new business. There are the mechanics of obtaining sufficient funding, whether through traditional banks, venture capital or new forms like crowdfunding with a kickstarter campaign.
You also have to create internal superstructure that you will build you company on, your organizational form. That formation can rely on a partnership-type organization, a corporate form or a limited liability company, which combines the advantages of each.
Your attorney can explain in detail the differences between the forms, and why you may wish to choose one form over another. These discussions should be comprehensive, as the bylaws or operating agreement that you create will literally govern all of your operations within your business.
Such things as who has ability to pay the bills of the entity or otherwise obligate the business. Who has hiring authority and how your mangers or board of directors will be chosen.
Other business formation issues involve the tax structure of the business and choosing a partnership, a C corporation, an S corporation or LLC will all affect your tax status and you should carefully consider all of the potential ramifications with your attorney.
A new business can grow rapidly, and a structure that seems more than adequate when there are four or five parties involved could become unmanageable if you quickly add staff and grow to 50-100 employees.
You attorney can be a valuable resource in choosing the form and filling in the details of all of your operational documents.
Boston Business Journal, “How Formlabs went from a 3-D printer Kickstarter campaign to an 80-person company (slide show),” David Harris, November 18, 2014