There are many moments in the life of a business when legal issues arise, and it is at these times that you need a business lawyer Middletown, CT business owners rely on. Finding and partnering with an attorney you trust is a great way to ensure that you and your business have the tools and advice you need to be successful at every stage of your company’s evolution.
The experienced Connecticut legal team at Eric Lindh Foster Law, LLC offers a wide variety of transactional services, representation and advice that will benefit your enterprise as long as you remain in business. We also take great pride in helping companies “get off the ground,” even before they’ve been legally recognized as for-profit or non-profit enterprises.
Starting a Business and Entity Formation
You’ve got a great idea and an entrepreneurial spirit, but it takes more than that to get your venture off the ground. You’ll need smart business-related legal planning through an attorney-client partnership with an experienced lawyer. Our firm’s Middletown, CT business lawyer team is ready to discuss your business idea and help you choose the most appropriate structure for your company. Options include:
- Sole proprietorships
- Partnerships and limited partnerships
- Limited liability companies (LLCs)
- Non-stock corporations
The type of structure you choose will influence everything about your business, from how you pay taxes to your level of liability if the business runs into trouble down the road. There are advantages and disadvantages to each formation option. It’s therefore important to weigh these opportunities carefully, as one or more may align with your vision for your company and one or more probably won’t.
Generally speaking, corporations have the strictest reporting requirements, managerial structures, and taxation obligations. These entities are not independently owned, but belong to shareholders. This isn’t to say that if you form a corporation that it must be publicly traded. However, you will need to adhere to the strict managerial, reporting, and taxation requirements tied to corporate ownership. One of the primary upsides to choosing a corporate structure is that liability for business debt, fines, penalties, and judgments are almost never passed along to shareholders personally.
By contrast, sole proprietorships and partnerships have flexible managerial requirements and minimal reporting obligations. However, these structures don’t benefit from a strong personal liability shield. Additionally, owners are usually taxed on their personal returns, which isn’t an ideal scenario for all business owners.
Limited liability companies, in many ways, represent the “happy medium” between corporations and sole proprietorships and partnerships. These entities feature a significant liability shield for owners (called members) and they benefit from far less rigid managerial and reporting responsibilities when compared to corporations. LLCs may be owned by a single member or multiple members and may be taxed personally or like corporations are.
Legal Assistance Is Available
No matter what your specific vision is for your company, you’ll need some legal help to get it off the ground and to ensure that it is as successful and protected as it can possibly be. Our firm would be honored to help you in these endeavors. Please connect with our Middletown, CT business lawyer team today; we look forward to assisting you.