| One of the many challenges facing a new business, single owner or partner, is selecting the right business structure. In making this vital decision one should take into account the need for efficient organization, limiting liability, possible tax consequences, and the importance of partners agreeing on their rights and obligations in writing. Business owners have the choice between a "C", or, "S" corporation, limited liability company (LLC), partnership and a sole proprietorship.
Owners with less than a majority interest in a closely held business often battle special challenges. This prompts the need to fully comprehend the limitations of one's position, and perhaps through negotiation, limit the problems of minority owners by requiring super-majorities for some business decisions.
We will work with you to identify and implement the best structure, and to craft written agreements that protect your interests in balance with the needs and demands of the other parties.
In certain cases we represent both or all parties in negotiating and preparing a business organization agreement. This is possible by upholding our ethical responsibility to fully disclose to multiple clients that their interests may be different, and not fully advocated by a single attorney who is attempting to create an agreement for all parties.
In selecting an attorney for your business organization, there are definitely important trade-offs for small business owners to consider: On the one hand, the cost savings of a single attorney preparing what seems like a simple agreement between two partners who like and trust each other, and on the other the benefit of a dedicated attorney exploring how a single agreement can impact two individuals differently. Just one example, two partners, one age 35 and the other age 59, might want and need very different agreements, on numerous issues, one arguable there for the long term, and the other, not. |