Partners need adequate protection
The decision to create the right kind of business entity is perhaps the most important in the start-up of your new business. I regularly litigate issues pertaining to improperly structured joint ventures. The time to set-up the company’s blueprint for operation is now.
There are many different options for setting up your business, and all have advantages and disadvantages. A general partnership, for example, allows you and a partner to maintain control of all aspects of the business and to share equally in profits and losses. However, this kind of set-up also puts both of you at risk of liability if something should go wrong at your business (for example, if a customer sues the business).
It is important at the beginning that you spend time thinking about things like who will be managing the day-to-day activities of your business, whether you have money to pay for insurance for your business, whether you are willing to be personally liable for any debts the business carries, and how many people you want to involve as business partners or associates.
A very popular form of business structure is the LLC, or Limited Liability Company. This entity enjoys special deferred tax features and maximum flexibility in the manner in which the business is controlled. It is perhaps the easiest to sell, should you determine you want to have your partner buy you out or if you choose to sell it to a third party. Another outstanding feature allows you to structure to receive rent income, which does not get burdened with social security tax.
Our firm has over thirty years of experience in litigation and have a substantial amount of experience setting up and breaking down companies. I know precisely what to do and if a novel requirement emerges, I know how to research the relevant law to optimize your intent.
I have set up literally hundreds of businesses in my quarter century career, and can help you to decide what kind of business best suits your needs. I know what steps to take to set up any kind of business venture and can help you to be sure that you do it correctly and protect your personal and business interests.