Anyone considering a new venture must take many steps before opening their doors. Selecting the appropriate entity is an important first step, but that is also only part of the process. A seasoned business attorney could help you plan out every step and help you lay the framework for your success.
If you have questions about this process, a San Antonio business formation lawyer might have the answers. Consulting experienced legal counsel could help you overcome challenges and avoid common mistakes that may hinder future growth.
There are many choices to make when creating a new business, but few are as impactful as determining its legal structure. Several options are available, each with its own strengths and weaknesses. The options available include:
Our knowledgeable San Antonio business formation attorneys could help owners weigh their options when selecting an entity. Some factors to take into account include the following:
An important consideration is personal liability. Some structures protect the owners from being held personally liable for the entity’s debts, while others do not. Some organizations, including LLCs, completely shield owners from the company’s creditors.
The founders of a new business can exert different levels of control depending on how the operation is structured. For instance, a sole proprietorship offers absolute control over every aspect of the operation. Corporations, on the other hand, must deal with directors and shareholders when making decisions.
Another crucial factor to consider when forming a business is the state and federal tax implications of the different business structures. The structure will significantly impact withholdings. Some options are pass-through entities, meaning the owners pay the obligations to the government directly. In other cases, the company will pay income taxes directly. Tax rates vary depending on the structure.
Different levels of administrative complexity come with each of these business structures. For example, c-corporations have the potential to grow much larger than an s-corp for example, but that comes with additional complications like additional reporting requirements.
The law does not require the assistance of a lawyer for those forming a business in San Antonio. While the founders of a company have every right to handle the process on their own, there are numerous reasons why the advice of legal counsel may be essential.
The right attorney could provide valuable insight into selecting the appropriate entity. After a decision is made, our firm could handle all the legwork that comes with starting up. Examples include drafting bylaws, determining shareholder rights, and developing a succession plan.
Each of these steps is vital, and handling them without the guidance of a lawyer can be time-consuming and riddled with complexities that may only arise after the business is growing. Letting a skilled attorney, like Sasha Begum, take care of these aspects of formation from the inception, can leave founders with more time to focus on the core aspects of building their operations and with a better framework to prepare the company for the future success.
The early days of a new venture are crucial, as they can set the tone for the future. Mistakes made during an organization’s start-up can result in structural problems that never go away and may negatively affect the company.
If you are ready for help with your new venture, now is the time to reach out. Call a San Antonio business formation lawyer at Begum Peláez-Prada PLLC today to learn more.
