Starting a business is no easy task and a greater number of businesses fail rather than succeed. Often times, the failure of a business is the result of uncontrollable economic forces. However, a lack of experience and knowledge frequently contribute to a business’ failure. In order to have the best chance of success in running a business, you will likely need professional advice and guidance from attorneys, accountants, marketing consultants, insurance agents, and financial advisors.
A good attorney can assist you in deciding which business structure would be most beneficial, provide information that will be helpful in maintaining the integrity of your business, refer you to other professionals that can be of assistance in the growth of your business, and, perhaps obviously, provide counsel in any number of legal matters that may arise in the course of business.
When starting a business, one of the most important steps is to choose the best legal structure for your company. Our attorneys can help you examine the following options and create a corporate or other structure suitable for your business needs:
General "C" Corporation
With this structure the business is a separate legal entity that is owned by its shareholders. The shareholders, directors, officers, and other employees of the corporation are generally protected from personal liability for civil actions taken by the business, and corporations generally have an unlimited life that can extend beyond the lives of the owners.
Corporations entail many legal formalities, and they are overseen by state and federal regulations and rules. Corporations are also taxed as a separate entity from the owners, and stocks and bonds may make it easier to raise capital for the business.
A close corporation is a good structure for groups in which the owners will be actively involved in management, as they are limited to a small number of shareholders. Some members may also be involved on a more limited level.
Close corporations do not have a public market for corporate shares, and removing an investment is difficult unless other investors are willing to purchase the share.