Business Formation Lawyers for Entity Selection and Startup
It is easy to understate the importance of the so-called formalities of business entity selection and registration. You can gain a decent understanding of the mechanics of business formation online, and canned business startup kits will let you form your own corporation or LLC simply by filling in the blanks. However, no online package will take the place of sound legal advice in business entity selection and formation.
While no entrepreneur has ever made a fortune simply by getting the details right in organizing a new business, many business owners have lost a great deal of money through missed opportunities and needless exposure to risk by making mistakes in choosing the form of their business and planning for growth. Contact a proficient business formation attorney at Tobolsky Law to learn about your entity selection options in terms that make sense for your situation.
Understanding Entity Selection Options in Terms of Your Own Objectives
Choosing from among your various business entity options is a practical decision that should reflect your own priorities, management strengths, concerns for risk, tax characteristics and long-range plans for yourself and your family. In other words, you can’t make the right choice between an S corporation and an LLC simply by comparing their different features. You need to consider how the different features of each business formation option will affect your interests at different stages of your company’s growth.
At Tobolsky Law, we advise entrepreneurs, business owners and established companies about the best ways to make the corporate, partnership or LLC form of a business serve practical needs and support continuing interests. We can help you choose from your options with advice based on experience and focused on the realities of your situation and your long-range objectives.
Most startups will take one of the following forms:
- S corporation
- C corporation
- Limited liability company (LLC)
- Limited or general partnership
We also advise nonprofit organizations and membership associations about the process of organizing, obtaining 501(c)(3) tax-exempt status with the IRS, and staying on top of the details of corporate governance and management.
Business entities with a single shareholder or member will most frequently choose between the S corporation or LLC forms, with the latter offering greater flexibility in terms of governance and management in the event that other investors will be sought at a later date. For the most part, both forms will offer similar advantages in terms of the protection of personal assets and tax treatment.
Adapting Organizational Documents to Meet Ownership Group Needs
Any new business with two or more principals will need to take a closer look at the management and governance features of the various entity selection options. Under any of the corporate forms, articles of incorporation and bylaws will define most of the roles and responsibilities of the new corporation’s direction. In an LLC, management roles will normally be defined under the terms of a carefully drafted operating agreement.
Additional organizational instruments can address such considerations as rights of first refusal for the purchase of equity interests, confidentiality and noncompetition obligations, and the distribution of profits in a manner other than a proportionate share of capital contributions. Entrepreneurs should also be aware that careful attention to the organizational details of a business can make the business more attractive to customers, clients, lenders and prospective business purchasers.
Call 856-428-5700 for Advice about Business Formation
Tobolsky Law brings more than 30 years of practical business experience to bear upon the organizational choices that entrepreneurs must make in the early stages of their new enterprises. If you are thinking about starting a business in South Jersey or metropolitan Philadelphia, contact our office in Cherry Hill for additional information.
Tobolsky Law in Cherry Hill provides business startup and entity selection advice to entrepreneurs, family businesses, professionals and nonprofits throughout southern New Jersey and greater Philadelphia, including such communities as Pennsauken, Bordentown, Mount Holly, Mount Laurel, Haddonfield, Camden, Willingboro, Norristown, Jenkintown, Doylestown and other locations in Camden County, Burlington County, Philadelphia County, Montgomery County and Bucks County.