Create Your Business
You’ve got the vision and the talent. We’ll guide you through start-up phase, client contracts, and founder and partnership agreements.
We regularly advise startup clients, helping them navigate through the decision-making process that will have lasting impact on their business and their lives. We help founders think through the issues that arise when starting a new business and those that come with adding partners to an existing venture down the road. It’s important to begin with the end in mind, and we will help make sure you have the roadmap to make your dream a reality.
AN INTRODUCTION TO BUSINESS FORMATION
Your business formation plan must address the possibility of rapid growth while at the same time protecting business and family assets against downturns in the economy or the failure of the business itself. Your plan must also protect your business from potential threats, such as:
- Frivolous lawsuits
- Potential conflicts with employees and even partners
- The inability of loved ones to access assets if you become incapacitated or pass away suddenly
In addition, your plan must address the manner and timing of your eventual exit from the business.
Choosing the right business entity is extremely important. We have extensive experience in helping entrepreneurs select and organize the entity that best fits their immediate needs and long-term goals. Here is a brief introduction to the most common approaches to business formation.
This is generally used by self-employed people who are not interested in formally organizing their business. Sole proprietorships do not offer liability protection for business owners.
Partnerships can be formal or informal agreements between individuals who want to work together and share both profits and losses. In a general partnership, all parties share profits, losses and liability. In a limited partnership, the partners contribute capital and share in profit or loss. However, the limited partner is not actively involved in business operations and has limited liability. Limited liability partnerships take it one step further to offer liability protection for all partners.
Corporations provide owners with many important benefits, including limited liability, the ability to issue shares of stock and greater flexibility in ownership structure.
Limited Liability Company
LLCs combine the flexibility of a partnership with the protection of limited liability provided by a Corporation. An LLC can also be easier to maintain than a corporation and provides exceptional liability protection if structured properly.