Sometimes, the appropriate form of business organization for a new business or even for an expanding business is still a corporation. Its familiar structure of having shareholders, officers and directors can be especially helpful in some circumstances. The taxation of a corporation can be either somewhat simple (i.e., a Sub-Chapter S corporation), or more complex (C-Corporation), depending on the activities, operations and employees of the company. Come in and visit with our experienced attorneys about your business objectives and we will discuss with you the pros and cons of establishing a particular form of business entity.
If a corporation is the go-to choice, then see our Starting a Business page for some of the initial decisions you should consider.
Considerations When Forming a Corporation:
- How the shares of stock will be issued and to whom, since the shareholders ultimately control the company.
- Will restrictions be needed on the shares in order to prevent unwanted transfers or sales of shares?
- Will shareholders be required to work in the business, or what happens if they no longer want to or are able to do so?
These kinds of issues are typically addressed in a shareholder agreement and are best worked out well in advance of them being needed.