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Legal Intellectual

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Q

I would like to receive a consultation on establishing a corporation. Where should I go?

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I have been running my business as a sole proprietor for three years now. As my sales have gradually grown, my business partners have been recommending that I convert to a corporation, and I frequently hear that establishing a corporation is necessary in order to attract investment or prepare for government support programs. When I search online, I find that it is said to be possible to establish a corporation online, but making judgments about how to set up the articles of incorporation, the composition of shareholders, and the structure of officers, and whether there is any potential for future disputes, seems to have its limits when done alone. So I would like to properly receive a consultation on establishing a corporation, and I am curious about how it helps to proceed with establishing a corporation after receiving a consultation at a law firm.

corporate establishment consultation

A

Answer to Related Inquiry

If you are at the stage of considering a consultation on establishing a corporation, it appears that you have already reached the point where you need to design your management strategy and legal structure together.

As you mentioned, establishing a corporation is not a matter that ends merely with the registration procedure, but rather becomes the starting point that determines the company's growth and risks for years to come.

The process of establishing a corporation, viewed formally, may appear relatively simple, but in practice, if the following elements are not reviewed together, there are many cases in which problems arise immediately after establishment.

- How to determine the composition of shareholders and the shareholding ratios

- To what extent the structure may give rise to the representative's personal liability

- Whether the articles of incorporation are designed with future investment attraction or partnership possibilities in mind

- Whether there are tax or asset transfer risks when converting from a sole proprietorship to a corporation

There are quite a few companies that handle the establishment of a corporation themselves or entrust it to a simple agency service, only to later come to a law firm again to inquire about a consultation due to the following problems.

- The occurrence of shareholding disputes among business partners

- Confusion in the decision-making structure due to deficiencies in the articles of incorporation

- The problem of structural changes becoming difficult during the process of attracting investment

- A situation in which the representative's personal liability becomes a greater issue than expected

An attorney experienced in corporate law approaches the matter, from the establishment stage, on the premise of a structure that reduces the possibility of disputes and manages the scope of liability.

This becomes a choice that prevents far greater risks in the medium to long term than merely reducing short-term costs.

Daeryun Law LLC views the establishment of a corporation not as a standalone task but as the starting point of overall corporate management, and conducts consultations on establishing a corporation in the following manner.

- Preliminary analysis of the company's current status, sales structure, and transaction patterns

- Review of legal liability according to the structure of the representative, shareholders, and officers

- Reflecting future investment and dispute possibilities at the stage of designing the articles of incorporation

- One-stop collaboration with related fields such as tax, labor, and intellectual property when necessary

In other words, Daeryun's approach is to design together even the management strategy to be pursued on the basis of the corporation.

Changing the structure after establishing a corporation becomes a much greater burden in terms of time, cost, and the possibility of disputes, so it is important, before establishment, to go through a thorough consultation on establishing a corporation with an attorney experienced in corporate law and to determine the corporate form and direction suited to your business.

Through a consultation on establishing a corporation, you may wish to first check whether now is an appropriate time to convert to a corporation, which form of corporation is advantageous, and whether a structure that also takes future expansion into account is possible.

Daeryun, Korea's ninth-largest law firm (based on 2025 National Tax Service value-added tax filings), provides tailored legal services.

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