Small Business

The best time to plan a new business is before you open its doors, and one of the biggest considerations is determining what form your business will take. Each state carries its own laws and requirements for businesses, so you need a law firm that specializes in starting a California business. The Law Office of Alec Harshey knows how to get your business off to the right start.
We can help you with the following areas of starting a business:

Business Formation

When you form a business, you must carefully analyze the nature of your business so you can consider a number of issues:

Does this business carry special liability issues?
Are you going into this business alone, or do you have full or partial partners?
What tax consequences are associated with your planned business?
Will you have enough staff to handle the paperwork requirements of your form of business?

At the Law Office of Alec Harshey, we examine the details of your business plans. Once we know the specifics, we can help you choose the road you need to take to get your business off to the best start.

Corporations

Perhaps the most common form of business entity is the corporation, which essentially separates the business from its owners and shareholders by defining the business as its own distinct legal entity. The corporation has the rights that would normally be held by business owners, such as the ability to own property and make contracts. A major advantage of forming a corporation is that it often takes on the liability issues that would normally be assumed by its owners.
There are two types of corporations:

Subchapter S corporation: The “S” Corporation has elected to be taxed under Subchapter S of the Internal Revenue Code, and it is treated as a partnership for most tax purposes. Income and expenses pass through to the corporation’s shareholders, who in turn report and pay any taxes due. You will pay state corporate fees, and an “S” corporation is not as flexible as a Limited Liability Corporation.
Subchapter C corporation: The “C” corporation provides significant liability protection and allows you to have the most investors. However, you may face double taxation with this form.

After choosing the type of corporation, the formation process involves many decisions and legal requirements. Just a few of those requirements include the following:

You must select the state of incorporation. In some cases, you must maintain an office within the state of incorporation.
You must file Articles of Incorporation within the selected state.
You must comply with the strict regulations of the state, including record-keeping and meeting requirements.
You normally must issue shares of stock.
You must comply with all federal tax requirements, as well as the requirements imposed by the state of incorporation.

There is no question that forming a corporation requires the assistance of an experienced, detail-oriented law firm. The Law Office of Alec Harshey has the expertise you need to get your corporation off to a solid, legal start.

Limited Liability Companies (LLC)

If you are not ready to incorporate, you may choose to create a LLC, which is essentially a cross between a corporation and a partnership. Similar to a corporation, the LLC has all the powers of one or more business owners. The LLC provides liability protection, and it is a flexible form of business in terms of tax planning and other considerations.

Each state has its own LLC laws, though. For example, while California accepts LLCs with one owner, many states do not. Each state has its own paperwork requirements, as well, including filing articles of formation with the state and maintaining the required records. California LLCs must file a semi-annual Statement of Information.

When you hire the Law Office of Alec Harshey to form your LLC, you can be assured that every aspect of your formation will be handled according to all federal and state legal requirements and that your business will be set up in a manner that is most advantageous for your individual situation.

Partnerships

If you plan to start your business with one or more other owners, setting up a partnership is a straightforward process because almost no paperwork is required. But, when you go into business with one or more individuals, occasional disagreements are inevitable. Just a few examples of areas of dispute include these:

Depending on how you split responsibilities within the business, you also need to consider how liability issues will be handled when one partner is more responsible than the others are.
Similarly, if each partner handles a different area of the business, you need to determine if all profits will be divided equally or if a larger percentage goes to the responsible partner.
When disputes arise regarding significant business decisions, particularly disagreements involving issues such as whether to acquire or divest areas of the business, you must establish a legal way to resolve them.

It is critical that you draw up a solid partnership agreement, which is even more important with an equal partnership, since certain day-to-day issues will not seem fair if divided equally. You need a law firm that has successfully formed a wide variety of partnerships. The Law Office of Alec Harshey can help you predict future issues and account for them before you open the doors on the first day of business.

Call us.

Get your business off to the right start by contacting a law firm that knows the local laws and handles every detail thoroughly. Ask The Law Offices of Alec Harshey to explain all your options to keep your liability issues under control and avail yourself of all tax advantages for your specific situation. Call the Law Office of Alec Harshey at 866-497-0982 from 9:00 am – 5:00 pm Mondays through Fridays for more information.