Whether you are an entrepreneur realizing the American Dream of starting your own business and being your own boss, a seasoned business professional ready to take the plunge by starting an entrepreneurial venture, or a working professional with the goal of generating a second income by joining the ranks of small business owners, it all begins with business formation.
The corporate shield or “corporate veil” is the fundamental benefit of forming a separate legal entity for any business. Not only does forming a separate legal entity provide the opportunity for tax savings, it also gives almost instant credibility to the start-up. More importantly, forming a separate legal entity can provide the small business owner with much needed separation; a “veil” between the small businesses owner’s personal and business liability.
Common Business Entities Include:
- Limited Liability Companies (LLCs)
- Partnerships (General and Limited)
- Corporations (C-Corps and S-Corps)
- Not-for-Profits 501(c)(3)
- Joint Ventures and Strategic Partnerships
The Team at Dom Law, PA, has guided countless start-ups, entrepreneurs, and small business owners through the seemingly daunting task of:
- Conducting due diligence for the intended name of the business and its domain;
- Selecting the correct business entity (something that most non-lawyers cannot do by simply purchasing a “form” online);
- Preparing and filing the necessary documents to give the business its legal existence, including filing articles with the state, designating a registered agent, and obtaining the businesses EIN number;
- Protecting the business and its members and shareholders by preparing agreements that should govern how the business will operate;
- Securing financing through private placement offerings and venture capital funding; and
- Establishing general corporate governance.
Things to consider when starting a business that the Team at Dom Law, PA, has experience handling include:
- Should I keep the members separate from the management by electing to form a manager-managed LLC?
- Should I seek pass-through taxation by forming an s-corporation or seeking s-corporation status?
- How can I preserve founder interest through a properly drafted buy-sell-agreement?
- What is the preferred way to resolve disputes and determining alternate avenues of dispute resolution, before the dispute even occurs?
- How do we protect the business through the use of restrictive covenant agreements including non-disclosure, non-compete, and non-solicitation agreements?
These are but a few of the issues the small business owner will face early on in the life-cycle of a business that the Team at Dom Law, PA can help you navigate.