When starting a new business, entity structure is a paramount consideration. Choosing the proper entity form can impact your estate plan, your business continuity plan, legal liabilities, and income taxes.
As an experienced West Palm Beach business formation attorney, the Law Office of Todd M. Kurland, P.A. works directly with business owners of small and medium-sized companies and entrepreneurs to determine the most appropriate structure.
The Roadmap to Success
The initial formation or organization of a new business is akin to the first steps of a new journey. But you can’t successfully reach your destination without a roadmap. A knowledgeable and experienced West Palm Beach business formation lawyer can help you design that roadmap.
A business formation attorney will often consult other professionals like financial planners, tax experts, and accountants in order to determine the advantages and disadvantages of various types of structures.
The structure chosen can greatly impact your new entity’s in terms of how it may be taxed, how easily new partners or shareholders may be admitted and the likelihood of later sale of the business, should that be an initial goal in forming the business.
As risk is naturally inherent to any new venture, Law Office of Todd M. Kurland works hand in hand with your business, providing counseling in matters including but not limited to how articles of incorporation, bylaws, or partnership agreements can impact the business and even protect you from unwanted financial liabilities as a result of potential disputes.
Asset Protection
Business formation is also crucial to protecting your assets. How your company is structured will determine the amount of taxes and even the tax rates that both you and your business are subjected to.
For example, depending on the formation, a business can deduct some startup costs, expenses, and operating costs from federal income taxes.
Understanding how to take advantage of these various allowances and how they can impact your business—both in the short and long term—can be essential for a new business owner. Addressing these issues prior to the point of formation places you in a position to make educated decisions about the form and future of your new business entity.
Articles of Incorporation and Bylaws
Whether forming a tech start-up, real estate venture, new restaurant or manufacturing business, or any other form of commercial enterprise, the business’ sound drafting and adoption of both its internal and external governing documents are essential in protecting the business and its principals from unnecessary against potential financial and legal risk and liability.
The initial filings or “external governing documents” made by a business entity to create a legally recognized business in the State of Florida are known as the Articles of Incorporation, in the case of a corporation, or the Articles of Organization, in the case of a limited liability company.
These documents set forth, amongst other things, the officers or members, respectively of the entity, its principal place of business, powers and registered agent for service of process. While largely pro forma, these documents, if drafted incorrectly, can cause problems at the very inception of your new business venture.
Arguably more consequential, are the business’ internal governing documents. In contrast to the documents required by law to be filed with the state as above, the internal documents generally remain closely held by the business and are not publicly filed with the State.
The internal documents typically set forth matters of paramount concern to a new business such as what powers it principals have to bind the business, the responsibilities of the various principals, how the business will be valued in the event of death, dispute, sale or withdrawal and, may provide for more economically efficient dispute resolution procedures such as arbitration clauses.
Though, such matters would appear benign, the voting, authority levels and noticing provisions set forth in the internal documents can greatly impact both the way the business conducts its affairs internally and externally.
These documents can help explain how money will be handled, who has the authority to access that money, and the types of oversight systems in place to mitigate risks and financial mismanagement.
It is also a good idea to use articles of incorporation and bylaws to indemnify yourself or your board members if certain types of situations arise during the typical course of business.
Understanding your options when establishing a new company in Palm Beach requires the assistance of a knowledgeable and talented West Palm Beach business formation attorney.
Taking Shape: Count On a West Palm Beach Business Formation LAWYER
The decisions you make during the startup phases of your business can have a powerful impact and influence on your business for years to come. Therefore, it is essential that you make an informed decision after consulting comprehensively with your West Palm Beach business formation lawyer. Do not make this decision without careful thought about the long term goals of your new business.
Contact the Law Office of Todd M. Kurland, P.A. today for the advice, professionalism, and experience you need for your Florida business. I will make your business needs a top priority. Don’t delay, as the decisions you make today will impact your company’s future, so call me to get started today.