Business Formation & Representation

Choosing the legal structure of your business is an important initial step, if not the most important, when forming a business. Certain entities such as corporations and limited liabiity companies offer protection from personal liability. Otherwise, a creditor could go after the business owner's personal assets due to the actions of the business. It is vital to protect your personal assets when engaging in business.

If a corporation or other entity that offers protection is formed, It is also important to keep the individual business owner's assets and income seperate from the corporations'. There are certain instances where creditors can go after your personal assets to collect on business debts. An example would be if a business owner kept his business funds in the same account as his personal funds. This is referred to as the co-mingling of funds and judges often declares these types of entities shams. With no distinction between the business entity and the individual, the individual loses the entities' protection from liability.

The federal tax savings offered is another reason to form a business entity that offers protection. A business' goal is to not only make money, but to keep it. The biggest tax savings reason to form a business entity is the opportunity to be taxed on the income once at the personal level. C-Corporations, for example, are taxed twice. The federal government taxes C-Corporations once at the corporate level, followed by another tax a second time for the business owner at the personal level.

Among other things, a business lawyer can incorporate your business, draft an operating agreement, draft and review contracts and employee manuals, and generally ensure your business launch is smooth and seamless.

Submit an evaluation to be contacted by a local business attorney.