Business Formation

Corporate Structure is the First Consideration for a New Business

What type of business entity is right for you and your business?  Today there are many choices for your consideration so you should spend some time reviewing your options so you can make the right decision for you and your company.  You need to choose the best business form that meets your needs and The Collins Firm is happy to help you analyze the choices and options available to you and your business.

Due consideration should be given for the choice of business formation and the type of business entity you should use.  In most states, there are several different types of business entities you can use for your business formation and I’ll spend a few minutes here looking at these options:

1.  Sole proprietorship – This type of business is used for VERY small businesses but does not afford any liability protection.  Most attorneys agree that this is the business form you should NOT use because of potential exposure to personal liability for events of the business.

2.  Corporation – This type of business entity is traditionally the most common business form and is very popular in large businesses especially long term established businesses.   The law regarding corporations has a long history thus giving you predictability in legal operations.  Many companies want to stay with a traditional corporation as that gives the feeling of stability and establishment that many businesses are seeking.

3.  Limited Liability Companies – This type of business is fairly new and does not have the long history of legal precedence, but the LLC law itself is modern and totally updated.  The LLC is often a good choice for small and medium sized businesses and in fact, I prefer to set up most of my clients as a Limited Liability Company because this form offers a wide variety of tax options in terms of how the company is treated.  Of course, this form does offer liability protection for individual owners.

4.  Partnership – This type of business is often used for very small partnerships involving two or more individuals.  Like a sole proprietorship, the form does not provide any liability protection so it is not a good form for most businesses.

5.  Limited Partnership and Limited Liability Partnership – This type of business generally provides the benefits of a partnership with the legal protections of a corporation.

As you can see there are many options for your consideration when it comes to corporate formation so it behooves you and any small business owner to check out the form that’s best for you and your business.

For more information, visit The Collins Firm website at www.mpcpc.com or call for a free telephone consultation at 404-214-6070.  This article is reprinted from a previous essay by Mr. Collins and an except may be found at http://www.atlantabusinesslawattorney.com/

Call or email The Collins Firm for more information!

 

Operating Agreements sets the Daily Business Rules


What is an Operating Agreement?  An Operating Agreement is the contract between the owners of a Limited Liability Company that controls how the company conducts business.

Do you REALLY need an Operating Agreement?   Yes you do!

In a limited liability company (LLC), the members of the LLC are the owners of the business.  If you have more than one member or owner, you absolutely need to have an Operating Agreement for your business.   No matter what size your business may be or how many members it may have, everyone, including the business is best served by having an Operating Agreement for the company.

An Operating Agreement sets out how the members would like to treat their ownership interest in the event of certain occurrences to the company or the members themselves.  These occurrences may include disability, divorce, death, the sale of the company, or the dissolution of the company.  An experienced Atlanta lawyer can draft an operating agreement that will help the business owners to develop a plan to handle circumstances as these and many more.

An operating agreement may contain a wide variety of provisions that set out the management of the company and the specific situations that require agreement of the owners.  The operating agreement can set out each manager’s and member’s rights and responsibilities to the company as well as to each other.

One of the most important goals of an operating agreement is to set out a system to resolve disputes and problems as they arise in the company.  The avoidance of deadlock through a system of dispute resolution set out in the operating agreement can help a company get through difficult times in the business.

The Collins Firm can provide an Atlanta, Georgia based attorney who will work with business owners to determine the best structure and provisions that will meet the needs of the company and the owners.

Atlanta business law attorney Matthew P. Collins, Esq., has almost 20 years of experience assisting businesses ranging from large, well-established companies to small start-up operations.  Mr. Collins has the skill, experience and knowledge to help you move your business grow and succeed.  For a complimentary consultation, call The Collins Firm at 404-214-6070 or email us today.

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