Running a business or nonprofit can feel overwhelming, especially because there are legal requirements to stay compliant and protect yourself from liability. It’s important to understand these obligations, and an attorney can help by guiding you through issues such as incorporation, leases, taxes, licenses, governance, employment, contracts, and ongoing compliance.

The decision to incorporate or formalize your entity affects liability, taxes, operations, and governance. An attorney can: 

• Help you decide which legal structure best meets your goals. 
• Assist with registration at the state and federal level. 
• Advise on compliance with incorporation, licensing, and tax-exemption requirements where applicable. 
• Draft agreements between founders or stakeholders to avoid disputes. 

Most entities must comply with governance requirements, including duties of board members or managing partners. An attorney can:

• Provide training on fiduciary duties and compliance.
• Draft or review bylaws, policies, and procedures.
• Advise on director and officer liability protections.

Leases for office, retail, or program space are often written in favor of the landlord. An attorney can:

• Review and negotiate lease terms.
• Explain ongoing obligations and remedies.
• Ensure the lease aligns with your operational needs.

Whether you hire staff or use independent contractors, legal requirements apply. An attorney can:

• Ensure proper worker classification.
• Explain tax and labor law obligations.
• Draft employment policies and contracts.
• Advise on insurance and recordkeeping practices.

Relying on verbal promises can be risky. An attorney can:

• Draft clear written agreements with customers, vendors, contractors, or partners.
• Review existing contracts to clarify rights and obligations.

Raising money—through loans, grants, crowdfunding, or investors—can trigger legal obligations. An attorney can:

• Explain state and federal fundraising and securities laws.
• Draft necessary agreements for lenders, donors, or investors.
• Ensure compliance with reporting obligations.

If you operate online or use branding and creative work, there are additional considerations. An attorney can:

• Draft website policies and disclosures.
• Review data collection and email marketing practices.
• Advise on ownership and protection of trademarks, copyrights, and other intellectual property.

For help with small businesses, not-for-profit organizations, and HDFCs contact the Community Development Project at 212-298-3340, CommunityDevProject@legal-aid.org, or complete our online intake form. 

The information in this document has been prepared by The Legal Aid Society for informational purposes only and is not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. You should not act upon any information without retaining professional legal counsel.