Gainesville Business Formation Attorneys
The first steps you take as a business owner are among the most important that you will make. Most successful business owners have the foresight to get professional assistance related to the formation and operation of their business.
At Coleman, Chambers & Rogers, LLP, we offer our clients in Gainesville and all across Georgia with our considerable experience in business and corporate law. Our clients seeking to start and grow businesses rely on our insight to make smart choices about their future.
Business Entity Options
When you form a business, one of the first discussions you will have with your professional adviser relates to the type of entity best suited for your business. The most common types of entities are:
- Limited liability company (LLC): As a business entity, LLCs are simple to set up in Georgia, with the requirements only being having a unique name for the LLC, and an address for the members of it. It offers a degree of protection of your personal assets from liability, but there are several situations that can overcome those protections.
- Subchapter S corporation: S corporations have their own codes under Georgia and federal law. They offer considerable and near-complete insolation of your personal liability from business risks. Creating a corporation is more challenging than most other forms of business entity, and it will carry some special taxation challenges.
- Nonprofit 503(b): The creation of a nonprofit 503(b) organization is complex both legally and from a tax perspective. Most companies would eschew such a path, but this is appropriate for some organizations that do not have a profit-focus but do wish to maintain liability protections.
- Sole proprietorship: Someone who operates their business in his or her name without legally forming an entity through which to operate the business is defined as a sole proprietorship and is typically responsible for the debts of the business.
- Partnership: Opening a business with another individual and running it without forming a legal entity is a partnership. If you open a business with a partner or a group of partners without forming an entity, this is called a partnership, but both are forms of direct ownership.
Each has different advantages and disadvantages. Choosing the appropriate business entity could allow you to receive more favorable tax treatment than you currently receive.
What To Consider When Choosing A Business Entity
You may have recently asked yourself, “Do I really need to incorporate?” If you are operating your business without the protection of a corporate shell, you may be putting your personal assets within the reach of the creditors of your business. If you have not taken steps to organize or incorporate your business, your personal assets, including your home, could be used to satisfy any judgment against your business. Filing articles and following the legal formalities to properly operate a business is the best insurance to protect your personal assets from the claims of business creditors.
If you are considering incorporating your business without the assistance of an attorney, you should know that a qualified attorney does much more than just file the paperwork necessary to form a company. Perhaps the most important task in the process of incorporation is not the creation of the entity, but rather providing the client with carefully drafted documents defining the rights and obligations of the owners of the company in the event of the death of an owner or a dispute among the owners.
Reach Out To A Team With More Than 100 Years Of Combined Experience
With detailed, clearly defined provisions in operating agreements and shareholders’ agreements, you can often avoid future disputes among business partners. Get assistance from someone with experience in the corporate arena in Gainesville. Contact Coleman, Chambers & Rogers, LLP, by calling 678-601-2495 or email our firm today.