When starting a new business, the decisions you make during the formation stages affect operations for years to come. Your choice of business entities matters from day one. You will need to comply with federal, state, and local legal requirements. You even need to consider your exit strategy now to protect your business from emergencies in the future.
At Full Circle Business Law, PC, we develop business formation strategies to launch your company on the right trajectory for growth and success. We evaluate your business entity options to find the best choice to meet your needs. Then we work with you to set up your core operating scheme, including bylaws, operating agreements, and other critical documents. We get you up to speed so there’s no need to look back.
Choosing a Business Entity
Options abound when it comes to selecting a business entity. We review the benefits and drawbacks of each potential choice to help you select the right entity. You might consider forming a:
- Professional Corporation
- Close Corporation
- Limited Liability Company
- Limited Partnership
- General Partnership
- Limited Liability Partnership
- Sole Proprietorship
Factors to review before selecting an entity type include tax burdens, asset protection, the ability to attract investors, costs and requirements for maintaining the entity, and the ability to offer ownership interests to employees or family members.
For instance, a C corporation provides solid liability protection for your personal assets, but proceeds face double taxation and the requirements for holding shareholder meetings and other maintenance duties often prove quite burdensome. Many businesses choose to operate as a limited liability company(LLC), which offers many of the benefits of a corporation with fewer formalities and a potentially reduced tax burden.
Even when business owners undertake the efforts required to establish a corporation or LLC, they can still place their personal assets at risk. If they do not fulfill certain requirements, a court can “pierce the corporate veil” to make the owners liable for corporate debts.
Full Circle Business Law, PC always strives to set up business entities to operate in accordance with all necessary formalities, to remain within allowed levels of individual ownership control, to keep business funds separated from personal funds, and to meet all other fundamental requirements. We understand the importance of protection.
To maintain the value of your business, you need to formulate a business succession plan as part of your start-up strategy. Without a plan for handling transitions, all the value you build into your business could be lost when you want or need to step away from an active management role. Based on your choice of business entity, leadership roles, and other unique factors, we develop a business succession plan to preserve the value of your business.
Let Full Circle Business Law Guide You Through the Challenges of Business Formation
The start of a business offers excitement, anticipation, and numerous opportunities for worry. We understand. After all, we operate a business ourselves.
We offer legal knowledge and guidance to ease your concerns so you can focus on growing your business. Call us today to get started with your business formation strategy.