Starting your own business can be daunting. There are innumerable things to plan and arrange for. According to the Small Business Association (SBA), five years after they open their doors, only about 50 percent of new businesses are still in operation. Only one-third survive for 10 years. You can increase your odds of success by working with a business attorney who will help you choose the best business structure for you. In addition, an attorney will help you plan for various contingencies and draft all necessary contracts and business agreements.
Factors to Consider in the Formation of Your Business Structure
There are several factors to think about when choosing your business structure:
- How to best protect your personal assets from liabilities incurred by the business.
- How your income tax and other taxes will be affected.
- The state requirements for filing documents relevant to your business structure.
- The state requirements for record keeping and reporting.
- Your personal tax situation.
- Who will share in the profits.
Overview of Types of Business Structures
You have a few choices from various business structures. You may choose one, but you can change at a later date if it does not work for you. The main choices include, but are not limited to:
- Sole proprietorship.
- Various types of corporations, including the differences between S-corporations and C-corporations.
- Limited Liability Company.
There are pros and cons to each business entity. An experienced business formation attorney will explain to you how each one works, the protection you will have for your personal assets and how your taxes will be affected.
Call Attorney Martin A Spigner for Your Business Formation and Planning Needs
At the Law Office of Martin A. Spigner, PC we put our 32 years of experience in business formation and contract law to use for you. In addition to helping you choose the best business structure to meet your needs, we educate you on how to conduct your business so you can be prepared for various tax ramifications.
We also prepare all necessary documents and agreements, including shareholder agreements, employment contracts, operating agreements for your particular business and attend to all of your business needs. Martin A. Spigner is admitted to practice in all state and federal courts in the State of New Jersey. Our office is located in Cranbury, NJ and by appointment in Edison and Harrison, NJ. Because of our extensive business and tax practice, we serve clients on a statewide as well as nationwide basis. Call us today at (609) 395-8877.