Why you Should Hire a Licensed Attorney to File your LLC?
A question I am often asked when entrepreneurs find out I am an attorney who helps people legally form business structures is “why do I need to use a lawyer to form my Limited Liability Company (“LLC”) when I can fill out the paperwork myself on the New Mexico Secretary of State’s website?” While it is true that you can fill out the Secretary of State’s list of questions if you have the required documentation, there are usually some questions an entrepreneur needs to answer first.
Is an LLC the correct legal structure for my new business?
This answer is dependent on a number of factors. A business attorney can explain the difference between a corporation, a limited liability company, a partnership, and a sole proprietorship, as well as the benefits and drawbacks of each. We will also conduct a local search on the New Mexico Secretary of State’s website to make sure that your business name is not already registered, which is different than a national United States Patent and Trademark Office search.
Your attorney needs to be familiar with the laws of your state relating to business entities. For example, in New Mexico, your LLC company name has to be identifiable from the name of any other LLC, limited partnership, or corporation existing under the laws of the state.
In addition to advising you of the best business entity, we will also file the Articles of Organization (articles filed pursuant to the LLC Act) for your company, which is the basis for forming your business within the State of New Mexico. We will also apply for a Federal Employer Identification Number (EIN) through the Internal Revenue Service and a New Mexico tax ID number. Finally, we can draft a comprehensive business Operating Agreement (a written agreement providing for the conduct of the business and affairs of an LLC) for your New Mexico business.
An LLC in New Mexico must have a registered office and a registered agent, on which to serve legal documents. However, having an LLC protects the members of the LLC from being sued in their individual capacity under New Mexico law. This is the benefit of doing business under a legal entity rather than as an individual so that you and your personal assets are separated and protected from a lawsuit.
New entrepreneurs may also need vendor contracts or other agreements in place to start their business sales and transactions, or even a business lease. It is important to have an attorney review or draft these agreements for you and make sure that the rights of your business are protected. It is always great to work with a lawyer with whom you’ve established a relationship.
