Entity Formation

WHAT IS ENTITY FORMATION?

Broadly explained, entity formation refers to the legal process of establishing a recognized business structure. Typically, the process involves selecting the most appropriate entity-type based on the specific needs and goals of the business. It matters because the entity of a company can have major implications for liability, taxation, management, and other issues.

YOUR BUSINESS NEEDS THE PROPER STRUCTURE TO THRIVE

Every company needs the right foundation in order to meet its true, maximum potential. Indeed, choosing the right business structure is crucial for the success and sustainability of your venture. The proper structure can enhance operational efficiency, affect personal/professional tax liability, and, determine your level of liability protection. Business structure also impacts your ability to raise capital from outside investors. Your company needs the right system in place. ELS is here to help make your decision easier.

WE HELP CLIENTS FORM ALL TYPES OF BUSINESS

ELS is a boutique law firm that provides solutions-focused legal guidance to clients who are prepared to form or transition their business.  Here a few examples of popular entity-types entrepreneurs use to create their businesses:

• C-Corporations: C-Corporations are traditional corporate structures that offer the strongest protection to its owners from personal liability, but they are subject to double taxation—first on the company’s profit and again on dividends paid to shareholders. Though the structure is the most complex, it is the best option for raising outside capital.
• S-Corporations: S-Corporations are special types of corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.
• Partnerships: Partnerships are formed between two or more individuals who agree to share in the profits and losses of a business venture. There are a number of different types of partnerships, including general partnerships (GPs), limited partnerships (LPs), and limited liability partnerships (LLPs).
• Limited Liability Companies (LLCs): An LLC combines the liability protection of a corporation with the tax efficiencies and operational flexibility of a partnership. It is a structure that shields owners’ personal assets from business debts and claims while allowing profits and losses to pass directly to their personal income.

HOW WE CAN MAKE A DIFFERENCE FOR YOU

With nearly two decades of combined experience, chances are that we have seen your situation before. ELS will take you and your company’s needs to create the best entity structure for your company. We put a very strong emphasis on anticipating and preventing problems before they actually arise. When done right, entity formation provides protections. No matter where you find yourself in the entrepreneurial process, our firm is prepared to help you navigate issues related to entity formation.