Business Formation Counsel For Start-ups
Are you developing the framework for your new business? If you have never formally created one before, you need the services of a qualified attorney to avoid mistakes. Our attorneys can help you with all aspects of successfully planning a new business. For example, there are multiple types of business entities. Each of these have different advantages depending on the goals of the business and circumstances of its owners. Choosing an entity type in which to form your business can be critical to early success while protecting your individual interests.
Choosing The Right Business Entity
Some factors to consider when selecting a business entity include liability, management structure and tax efficiency Though in many cases it is possible to change a business entity, selecting an entity type is not an arbitrary endeavor. You should carefully evaluate the details of you and your business partners’ financial situation and goals. Our experienced lawyer can advise on what entity type is likely to be the most beneficial.
Some of the business entities our business lawyers in Springfield can help you form include:
- General partnerships – Two or more partners run a for-profit business without formal organization. This can lead to liability and ownership disputes without clearly written agreements indicating who is entitled to and responsible for what.
- Limited liability partnerships (LLP) – Similar to a general partnership. However, as the name would imply, limited liability insurance is required to protect owners from company tort. This entity is also formally registered with the state.
- Limited partnerships (LP) – A more organized and structured version of an LLP whose articles are registered with the Secretary of State.
- Limited Liability Companies (LLC) – A structurally customizable, formally registered entity with some flexibility on how it is taxed.
- Corporations – a complex entity with many subcategories and often the most formal organization. Generally includes a board of directors, shareholders, and officers, all governed by established company bylaws.
It is possible to form a company on your own. However, you may not understand the full implications of the entity you select. This can lead to substantial liability and tax problems just as your business is likely hitting its stride.