Corliss Law Group Estate Planning Law Corporation: Choice of Business Entity
Absolutely! One of the very first decisions that someone getting ready to start a business has to make is what form of business entity to operate in. This is a complex and very important decision and should not be taken lightly. This decision will have a considerable impact on a number of very important business and tax consequences, including protection of the owners against outside liabilities, shielding of personal assets from business risk, the ability of the business to raise capital and obtain financing from commercial lenders, transferability of interests, the ability to qualify for certain favorable tax benefits, the building of value and exit strategies, and the ability to integrate with your estate plan, to name but a few.
The initial business planning involves quite a bit more than entity choice and formation. At the start of any new business there are a host of decisions that need to be made concerning business processes, record keeping, reporting, compliance procedures, economic and capital structure, labor structure, procedures and compensation, insurance coverage, etc. Many of these mattes have a legal component or present varying degrees of risk exposure, all of which we assist the business owner is addressing so that the business has a solid foundation and initial structure. Additionally, proper business planning allows you to prepare for your future in three distinct ways: ensuring that your business provides you with the maximum return, protecting the welfare of your family, and protecting your business entity and operations.