Savvy Business Formation Attorneys in Cleveland
Guiding businesses through corporate, partnership, and other legal formations
Many factors must be reviewed before forming a business. The way a business is formed affects control issues, the ability to obtain financing, liability issues, management concerns, taxes, and many other issues. The way a business is formed also affects the way it can be ultimately dissolved or the ownership interest transferred. Where the business is registered is also a factor. Many legal and practical issues should be analyzed to make the best choice possible for your business.
One of our skilled business formation lawyers will guide you through the local, state, and federal issues that must be resolved. The proper business entity can help you meet your financial goals while minimizing economic risk. At Gertsburg Licata we have hands-on business experience. In addition to advising new businesses, many of our lawyers have either run their own businesses or served as in-house counsel.
Types of business entities
A few of the more common types of business structures are:
- Sole proprietorship. In this arrangement, there is only one owner who bears all the risks and gets all the benefits. The owner owns all the assets and all the debts. Many sole proprietors operate their business under a fictitious name. We understand when a sole proprietorship is adequate and when other entities that provide liability protection should be considered.
- Partnerships and limited partnerships. Partnerships generally consist of two or more partners. Control and succession issues are generally determined by the partnership agreement. Generally, the tax obligations pass through to the individual partners. Partnerships may be “general partnerships,” “limited partnerships,” “limited liability partnerships” and “family limited partnership.” These types differ in terms of the rights and potential liabilities of the partners.
- Limited Liability Companies.This type of entity can be used in a wide variety of contexts due to its flexibility in terms of governance and taxation and due to its simplicity in terms of corporate formalities. LLCs are efficient and effective vehicles for businesses of almost any size or industry.
- Corporations.Corporations have a complex governance structure compared to other entity types. Generally, shareholders elect a board of directors that is responsible for management of the corporation, and the board elects officers who, together with employees, are responsible for day-to-day operations. Although this entity type is most common among publicly-traded companies, it is not uncommon among small and middle market businesses. A modified version of a corporation, known as a “close corporation,” can be established with a simplified governance structure and fewer corporate formalities, and can be very appropriate for family-held and other small businesses.
Our Cleveland business formation lawyers also represent businesses that are going through restructuring, such as mergers or acquisitions.
Contact business formation lawyers for help with your business planning needs
The Cleveland business attorneys at Gertsburg Licata are ready to help steer you to the right business entity for your interests. We then work to prepare and negotiate the proper corresponding legal documents. If you are starting a new company, we have the professional experience to properly help you. For answers to your questions and sound legal counsel, please phone us at 216-573-6000 or fill out our contact form to make an appointment.