Business Formation Lawyer Connecticut

If you’re deciding on a legal structure for your business, you may want to consult a business formation lawyer Connecticut residents trust. A lawyer from Eric Lindh Foster Law, LLC can thoroughly explain all the legal entities and help you make a wise choice. Here is an overview of the legal entities you can choose from.

Sole Proprietorship

With a sole proprietorship, there isn’t a legal difference between the owner and business. This business entity is run by only one person and common in small businesses. A sole proprietorship is relatively simple and inexpensive to set up and allows the owner to have full control of the business. However, the owner will have unlimited personal liability for any liabilities the business incurs.

 

Partnership

A partnership is a type of business legal structure that involves two or more people. A partnership agreement is generally easy to create and profits and losses in the business are passed through the owner’s personal tax returns. Like with a sole proprietorship, owners of a partnership are personally responsible for business liabilities.

 

Corporation

A corporation is separate from the people who own or run it and is the most complex business structure. Corporations are typically more suitable for larger companies with multiple employees. With a corporation, shareholders have limited liability, so they are personally responsible for any liabilities the company incurs. Investors also prefer to invest their money in a corporation. Since a corporation is more difficult to establish, it’s important to work with a Connecticut business formation lawyer.

 

Limited Liability Company

A limited liability company (LLC) has one or more owners and combines the best aspects of sole proprietorships, corporations and partnerships. The main benefit of forming an LLC is that owners have limited liability. If the business incurs debts or claims, no one can go after an owner’s personal property, like homes and vehicles. An LLC is also typically easy and inexpensive to establish and allows pass-through taxation. However, LLCs aren’t generally attractive to outside investors.

 

How to Choose the Right Business Structure

For people just starting a business, it’s not always easy to select a structure. If you’re currently in this situation, you may want to consider your business’s current financial needs and risks. For instance, if you have a startup and want to keep everything as simple as possible, you may want to think about a sole proprietorship. However, keep in mind that it’s more difficult for sole proprietorships so secure funding from outside investors.

 

If you want limited liability, forming an LLC might be a good option. As mentioned above, if you have an LLC and get sued, no one can come after your personal property. They can only go after the business.

Schedule a meeting with a Connecticut business formation lawyer from Eric Lindh Foster Law, LLC today to discuss your needs.

Legal Requirements For Hiring Employees In A New Business

When starting a new business and building a team, it’s essential to meet the legal requirements associated with hiring employees. These regulations are designed to protect both employers and employees, creating a fair and compliant work environment. By addressing these obligations early, we can set our business up for success and avoid potential issues down the road.

At Eric Lindh Foster Law, LLC, we’ve helped businesses across Connecticut establish themselves while adhering to employment laws. A Connecticut business formation lawyer from our firm is ready to assist you. Below are the key legal requirements we need to consider when hiring employees.

1. Obtain An Employer Identification Number

Before hiring employees, we need to obtain an Employer Identification Number (EIN) from the IRS. This number is used for tax purposes, such as reporting payroll taxes and filing required documents. Applying for an EIN is a straightforward process that can be completed online, and it’s a critical first step for any new employer.

2. Verify Employment Eligibility

Federal law requires that we verify every employee’s eligibility to work in the United States. This is done by completing Form I-9 for each new hire and verifying their identity and employment authorization using acceptable documents like a passport or Social Security card. Employers are also encouraged to use the E-Verify system to confirm eligibility electronically.

3. Register For State Tax Accounts

In Connecticut, we must register with the state to withhold and remit income taxes from employee wages. This includes registering for unemployment insurance and workers’ compensation insurance. These programs are essential for protecting employees and ensuring they receive necessary benefits if they lose their job or are injured at work.

4. Follow Wage And Hour Laws

Compliance with federal and state wage and hour laws is crucial when hiring employees. This includes paying at least the minimum wage, adhering to overtime rules, and providing legally required breaks. In Connecticut, it’s important to stay up to date on state-specific wage requirements, as they may differ from federal regulations.

5. Maintain Workplace Posters And Notices

Employers are required to display certain workplace posters and notices to inform employees of their rights under federal and state laws. These posters cover topics like workplace safety, wage and hour rules, and anti-discrimination protections. The Department of Labor provides free copies of the required posters.

6. Draft Employee Agreements

Creating clear employee agreements can help define expectations and protect both the employer and the employee. These agreements should outline job responsibilities, compensation, benefits, and other terms of employment. Having these documents in place can help prevent misunderstandings and disputes later on. For assistance with agreements, be sure to contact a Connecticut business formation lawyer from our firm for help.

7. Comply With Anti-Discrimination Laws

Federal and state laws prohibit discrimination based on factors like race, gender, age, religion, or disability. When hiring employees, we must follow these regulations to create an inclusive and fair hiring process. This includes avoiding discriminatory language in job postings and ensuring that employment decisions are based solely on qualifications and job requirements.

8. Set Up Payroll And Record-Keeping Systems

Accurate payroll processing and record-keeping are essential for meeting tax obligations and maintaining compliance. We must keep records of employee hours, wages, and tax withholdings, as well as issue W-2 forms at the end of each tax year. Setting up a reliable payroll system helps streamline this process and reduces errors.

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Hiring employees is an exciting step in growing a new business, but it comes with important legal responsibilities. By addressing these requirements, we can build a compliant and successful business from the start. If you’re in Connecticut and need guidance on business formation and employment laws, contact Eric Lindh Foster Law, LLC. Speak with a trusted Connecticut business formation lawyer today to ensure your business meets all legal requirements and is ready for growth.