Business Formation

Business Formation Choosing the right structure for your business is a critical decision that affects your operations, taxation, and liability. We assist clients in forming entities such as LLCs, corporations, partnerships, and sole proprietorships. Our team provides clear advice on the advantages and disadvantages of each structure and handles the drafting and filing of formation documents, such as articles of incorporation and operating agreements. Let us help you establish a strong legal foundation for your business.

Types of Business Formation:

• Limited Liability Company (LLC):

  • An LLC combines the liability protection of a corporation with the tax benefits and flexibility of a partnership. It’s a popular choice for small businesses due to its simplicity and limited personal liability for business debts.

• Corporation:

  • A corporation is a separate legal entity that provides the highest level of personal liability protection. It’s ideal for businesses seeking to raise significant capital or expand on a large scale. Types include C Corporations and S Corporations, which differ in tax treatment.

• Partnership:

  • Partnerships are formed when two or more individuals agree to share ownership of a business. General partnerships involve shared management and liability, while limited partnerships have both general and limited partners with varying levels of involvement and risk.

• Sole Proprietorship:

  • A sole proprietorship is the simplest form of business, where one individual owns and operates the company. While it’s easy to set up, the owner is personally liable for all business debts and obligations.

• Nonprofit Organization:

  • Nonprofits are formed to serve charitable, educational, or social purposes. They enjoy tax-exempt status but must comply with strict regulatory requirements and use profits to further their mission rather than distribute them to owners or shareholders.

• Professional Corporation (PC):

  • Designed for licensed professionals such as doctors, lawyers, and accountants, PCs provide liability protection specific to professional services.

• Joint Venture:

  • A joint venture involves two or more businesses collaborating on a specific project or business activity while remaining separate entities. This structure allows for shared resources and expertise.

Let Attorney Stephen B. Johnston help you evaluate the best formation option for your business and ensure a smooth setup process. Contact us today to get started.