Congratulations on Starting A New Business
Now it is time to pick the right legal structure to protect your personal assets. Selecting the proper business structure will help the entity grow according to the plan. Business planning attorneys provide the best legal advice for making the best decision that works for you and your company.
There is so much to consider when starting a business. This is why meeting with business planning attorneys is important. They can explain the legal challenges of operating a business. More important the can advise on the legal aspects for an existing entity or a startup. It is important to prepare the business for growth from the beginning. You are going to be busy managing the internal operations and the day-to-day activities.
Is this a sole proprietor business, a partnership or a corporation?
No matter, what type of business entity you choose; legal agreements and business requirements to conduct business must be in order. You may need assistance with proprietary rights or trade secrets. Don’t forget to consider capital, finances and employee issues.
Legal Business Formations
No matter how you form your business, each one has business requirements that govern how the company operates. The guidelines may differ between the states. They all have advantages and disadvantages concerning ownership, taxes, risks and liabilities. Business planning attorneys can explain the entity forms and help select the one that works best for your type of business.
Corporation S or C
Limited liability company
The setup costs do vary for these entities. So does the reporting obligations to the federal and state offices. The one common responsibility these entities share is income tax. The method of reporting and payment is outlined in the guidelines. Corporations are usually liable for its own debts including taxes. The other entities may pass the business taxes due directly to your personal tax return.
Succession – Business Relationships Change
Succession planning is critical for newly acquired and maturing businesses. Owner’s use and dedicate diverse resources when building a successful business. It’s not unusual for business owners or partners to focus on the business and fail to prepare a succession business plan. The purpose of a succession plan is to protect your portion of the business. Planning early, reviewing the plan, and amending the plan as conditions change is essential for succession.
In some cases, one partner dies or decides to separate from the business. Whether you succeed a family member or a business partner, you need to meet with a business planning attorney. Succession plans include financial and business objectives. Your attorney can help with the legal transfer of business assets.
A pre-exit assessment is a good starting point for a successful transition. Corporations generally have succession plans in place. Small businesses often struggle when a senior owners or partners retires or dies. If the partner was a primary participate in the business, problems occur when they leave. Succession plans are especially important for family-owned businesses.
The successor is named to eliminate disagreement
Contingencies need to be listed in case the named successor is unwilling to accept
Training and mentoring on business operations should be part of the transition
Sometimes, a departing partner is ready to sell a portion of the business. Based on an existing legal partnership agreement a business attorney can transfer the ownership.
Consult Our Business Planning Attorneys
A good business plan considers the human, legal, business and financial aspects. The updates should include business entity registrations, along with an initial exit plan. The plan makes selling, retiring or transferring any part of the business to a successor easier. Succession plans may have tax obligation and legal consequences. Consult our business planning attorneys, contact Troncelliti Law Associates at (610) 365-4240.
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