BUSINESS FORMATION
The formation of any new business requires careful planning and legal drafting. We help the founders select the kind of legal entity to form and in what jurisdiction to form and organize it in light of their short-term and long-term objectives. We prepare and file the legal documents necessary to form and organize the business (excluding, however, any securities regulation filings that might be necessary, which we refer to specialists).

Frequently asked questions:

How much will it cost? In most instances, we are able to quote a fixed fee for the legal services necessary to form and organize a business entity. In cases where it is more difficult to gauge the probable workload, such as when there are regulatory considerations or numerous founders who will have direct influence on the workload, an hourly fee might be necessary. Out-of-pocket costs such as government filing and registration fees are billed in addition to the fixed or hourly fees. Formation and organization of a one-person legal entity can cost $750.00 (including filing fees) or more depending upon the business involved and the scope of services requested. A retainer for fees and costs is collected upon commencement of work. The entity can reimburse the founders who are advancing the costs of its formation.

How long does it take? With electronic filing the actual formation of a legal entity is almost instantaneous. However the advance planning and counseling is time-consuming. We can form and organize many one-person legal entities in the course of a two-to-three hour in-person consultation. A multiple-owner entity can take from a day to several weeks and longer, depending upon the number of owners, the type of business, the manner of raising capital, the founders' own timetable, and the complexity of the legal and financial relationships being established.

What do we need to do to get started? The initial step in planning and drafting is a meeting with the founders in which their objectives and understandings are developed, reviewed and analyzed. Some cases call for a pre-formation agreement among the founders in order to avoid disputes that might otherwise arise in the formation process and post-formation. In some cases, a one-person business will not benefit much from the expense of forming, organizing and maintaining a separate legal entity. We can help with all of these processes and decisions. The more thought and preparation you do before forming the business, the greater your chances of eventual success. A thorough business plan, including financial projections, a trade name and trademark evaluation, market study and marketing plan, is beneficial if not essential in most instances. For businesses that will have more than one owner, a clear understanding about their respective managerial roles and obligations within the business is essential.

Can you form a legal entity in another state? Yes. We have formed entities from time to time in Nevada, Delaware, Maryland, Wyoming and other states depending on the client's needs and desires. However, Colorado is an ideal jurisdiction for the vast majority of Colorado-based businesses.

Where can I get more information on the Internet? The Colorado Secretary of State publishes many helpful materials (including official filing forms) concerning the formation, organization and maintenance of legal entities in this state. In addition, most if not all other states now have web sites similarly devoted to the formation of business entities in those states.

What is the value of engaging a lawyer in the process? A lawyer should know various provisions that, depending on your goals and circumstances, should be included in the formation and organizational documents that are not on generic or public forms. Equally important, a lawyer can counsel you on the most suitable legal structure, make sure that all steps required to organize the entity have been taken, identify potential legal traps, and document understandings between the founders which if undocumented or poorly documented could lead to costly internal disputes.