The formation of a business entity is an effective legal strategy that is applicable in many different situations faced by our clients. Whether you are starting a new business, reorganizing and restructuring an existing business, or entering a commercial real estate transaction, our legal team can help you select the right type of business entity structure based upon your situation and efficiently provide the services needed to create it.
Importance of Business Formation & Entity Selection
When it comes to selecting an entity type, one size does not fit all. Entrepreneurs can generally choose from a number of different entities when creating their business. It is important to consider the exact nature of your specific business when deciding which entity type to use (i.e. limited liability company, corporation, partnership) because the business structure you choose will have varying legal and tax implications for you and your business. Selecting the appropriate entity type should be based on your available time, commitment and resources, and consider long-term goals for your business. Although you can change your ownership type at any time, you should decide carefully, because the form of business you choose will affect the way you file paperwork, face personal liability, pay taxes and, if necessary, file for bankruptcy protection. For example, a sole proprietorship will not protect the business owner’s personal assets from the liabilities of the business. On the other hand, a limited liability company will provide such protection.
Business formation transactions are one of the most common transactions we work on at Hull Barrett. Formation transactions include advice, counsel, and execution of the following:
- Registration of entity;
- Capital contributions of founders;
- Division of equity and time and/or performance agreements;
- Employment and Consulting Agreements;
- Indemnification of Directors and Officers;
- SS-4 – Obtaining EIN; and
- Membership Agreements, Partnership Agreements, and Bylaws
Once a business form has been selected, we will draft all of the business documents and file all of the necessary paperwork to make the business official and operational. This includes the creation of bylaws, operating agreements, partnership agreements, articles of incorporation, articles of organization. We pride ourselves on tailoring these documents to your specific needs, rather than providing cookie cutter solutions that may or may not provide the legal compliance or liability protection that you need.