Starting a Business: Business Formations, Business Organizations, Startups
Getting legal advice before you start your business can be the best way to put your business on the right track for long-term success. Investing in legal counsel at the start may help prevent you from typical missteps that can result in obstacles for your business.
Below are the main issues we consult with you about before you start your business.
Type of Entity
Don’t let your business liability affect your personal assets. We can assist you to determine the best type of entity for you so that your personal assets are protected.
Most business owners typically want to have the business separated from their personal finances (also know as “limited liability”), so that the risks inherent with owning and operating a small business are isolated from personal funds. To achieve this, new business owners must choose a type of entity. Depending on the size and nature of the business, the owners could choose to start a corporation or limited liability company, both of which offer limited liability to the owners.
When multiple owners/founders are involved, it is critical that the parties understand their responsibility to the business and the other owners. We work with owners to develop a method for buying and selling equity, capital contribution requirements and how management of the company will operate. Because of complex issues related to having multiple owners, it is important to have a well-thought out operating agreement, shareholder agreement or buy-sell agreement.
Based on the type of entity you choose and your role in the business, you and your company could have significant tax consequences. We counsel you on the best and most efficient way to organize and run your business to minimize the tax burden.
For all entities, you should execute and file organizational documents. We can draft and file these documents on your behalf, making sure that your business operates in accordance with state and federal law at the outset.
Depending on your business, you may need to obtain certain licenses, permits and insurance. We can assist you with determining which of these you will need and help you obtain them in accordance with state and federal law.