Business Formations & Start Ups

Business Formations and Start-Ups

Choosing a type of business entity for your new business is a crucial first step. Unfortunately, there is no “one size fits all” approach; rather, the best entity for your company will depend on a number of factors.

The corporate and business law attorneys at Hamra Law Group can help you evaluate your options, choosing an entity form and helping you with other critical start-up decisions that make sense based on where you are today. We’ll also work closely with you to make sure the strategies we recommend and help implement consider your dreams and goals for your business in the years to come.

Whether you choose to formally incorporate your new business, establish a partnership or form a limited liability company, you need to understand the implications of that decision.

C-corporations are a popular choice for many New York-based businesses that are trying to attract venture capital and public funding because they can have an unlimited number of shareholders and are often perceived as being more professional businesses.

However, anyone forming a C-corporation should also be aware that this type of business requires corporate formalities including maintaining bylaws, holding board meetings and shareholder meetings. From a tax standpoint, C-corporations are taxed as separate legal entities, so both the corporation and its founders/shareholders pay taxes on income.

S-corporations may offer more favorable tax treatment for business owners. However, there are some drawbacks too.

This type of business entity is limited to a maximum of 100 shareholders, each of which must be a U.S. citizen. S-corporations allocate profits according to ownership interest, just like with C-corporations. However, the partners of S-corporations are only taxed on their personal income rather than also being taxed at the corporate level.

Limited Liability Companies (LLCs) in New York offer owners the same liability protection as corporations, but with fewer formalities. However, LLCs cannot be public entities and may not issue stock. This makes them a less attractive business form for any business that wants to grow through external investments.

Partnerships can be a good structure for some business owners who want the liability protection afforded by corporations with pass-through tax treatment. However, just like LLCs, partnerships cannot “go public.”

Start-up businesses can face an uphill battle getting their business up and running. In addition to helping determine which type of legal business entity will best meet our clients’ needs, Hamra Law Group helps entrepreneurs with other key services. Some of the ways we can help include:

• • Filing required legal documents to form and dissolve legal entities
  • Helping negotiate leases for real estate and other contracts for goods and services
  • Negotiating and drafting shareholder agreements, operating agreements and deal terms
  • Forming tax-exempt entities
  • Assistance with financing terms and agreements

You want to position your new business for success from day one. Having an experienced, knowledgeable legal team behind you can give you peace of mind knowing your needs, interests and rights are protected.

Choose Hamra Law Group to start your business off on the right foot.