Considering Incorporating your New Business? Consider the Following Issues First
A business owner always has a lot on his or her plate. This is especially true during a business’ first few years, as its owners build the company and establish themselves as viable players in the local, national, or even global economy.
The best way to ensure that your business has a chance to be successful is to stay on top of all legal issues that your company faces. The first of these issues is incorporating your business. Incorporation is the process of registering your company as a tax-paying entity. There are a few different types of business entities from which to choose, and each has its own benefits and drawbacks for business owners. Once you have developed your business plan, the next step is to discuss incorporation with an experienced business attorney.
Determine Who Will be Making the Important Decisions
When you register as a business entity, you need to name the incorporators and directors in your articles of incorporation. These individuals are generally the company’s owners. They are the individuals who steer the business and make further important decisions for it at various points of its life.
Determine contingencies before you incorporate. Contingencies are the guidelines you follow in the event of specific occurrences, such as one of the business’ owners having to leave the company or a dispute arising between the owners and an employee. Determine how you will resolve specific types of disputes, such as arbitration or mediation.
Determine the Right Type of Entity for Your Company
Depending on your business needs, one type of entity might be better for your company than another. For example, if you plan to provide benefits for employees like healthcare and life insurance, you need to register as a c-corporation. If you need the utmost flexibility, a limited liability company (LLC) is best for you. Other types of business entities include partnerships and s-corporations. Research all of these types thoroughly with help from an experienced business attorney to determine which type is best suited for your company’s needs.
Incorporation is Not a “Set It and Forget It” Process
After you incorporate your company, you need to continue to maintain and manage it. This means paying your taxes, having shareholder meetings as required by your entity type, and maintaining detailed accounts of the company’s finances. Your attorney will help you incorporate and your business’ accountant will handle its taxes, but being a business owner means being constantly involved with your company.
Business Attorneys in Winter Park
When you are ready to start moving forward with your business and start the entity creation process, contact an experienced business attorney to determine the right entity type for your company and other business law issues that come up. Contact Hornsby Law Group today to schedule your legal consultation with our firm and move forward by working with us. We are an experienced business law firm based in Winter Park, Florida, and can help you launch your new company by covering all your legal needs.
