New York Business Formation Attorney
You have the vision and the talent. We have the mastery of business law and experience necessary to guide you through every aspect of the startup phase. We’ll help you think through the issues that arise when forming a new business and those that come with adding partners and employees to an existing venture down the road. It is important to begin with the end in mind, and we will help ensure you have an effective roadmap to reach your destination and make your dream a reality.
A Brief Introduction to Business Formation Planning
Your business formation plan must address the possibility of rapid growth while at the same time protecting business and family assets against downturns in the economy or the failure of the business itself. Your plan must also protect your business from potential threats, such as frivolous lawsuits; taxes; potential conflicts with partners and employees; and the inability of loved ones to access assets if you become incapacitated or pass away suddenly. In addition, your plan should address the manner and timing of your eventual transition out of the business.
Here is a brief introduction to the most common approaches to business formation.
This is generally used by self-employed people who are not interested in formally organizing their business. Sole proprietorships do not offer liability protection for business owners.
Partnerships can be formal or informal agreements between individuals who want to work together and share both profits and losses. In a general partnership, all parties share profits, losses and liability. In a limited partnership, the partners contribute capital and share in profit or loss. However, the limited partner is not actively involved in business operations and has limited liability. Limited liability partnerships take it one step further to offer liability protection for all partners.
Corporations provide owners with many important benefits, including limited liability, the ability to issue shares of stock, and greater flexibility in ownership structure.
Limited Liability Company
LLCs combine the flexibility of a partnership with the protection of limited liability provided by a Corporation. An LLC can also be easier to maintain than a corporation and provides exceptional liability protection if structured properly.
Choosing the right business entity is extremely important. We have extensive experience in helping entrepreneurs select and organize the entity that best fits their immediate needs and long-term goals.