Business Lawyers for Structuring & Formation
Corporate and Small Business Lawyers
There are many ways to structure a business and it can become very complex depending on the company’s goals and growth. Having business lawyers who are well-versed in business tax and contracts is advantageous. Whether local and service-oriented or national and product-oriented, every business will face hurdles. Every business owner should consider the benefits of establishing a legal entity such as a corporation, a limited liability company (LLCs), limited liability partnerships (LLPs). Each type of entity comes with its own benefits, but business owners must consider which structure will best facilitate their goals.
Corporations might be the classic legal entity, but two levels of taxation may make this unattractive for small business owners. On the other hand, a business owner may elect that its corporation be taxed under subchapter S of the Internal Revenue Code—a so-called “S” corporation, which allows a single level of taxation. Our small business lawyers have an understanding of what is best for small businesses versus corporate law and vice versa.
Having a partnership will further complicate the structuring of the business. It may be appropriate if there will be two or more owners, but each partner may be liable for the business acts of the other. Expansion and restructuring of a business may present opportunities for multiple levels of LLCs or LLPs, qualified subsidiaries of “S” corporations (QSUBs), and other entities in almost endless combinations. The business lawyers at JDKatz: Attorneys at Law have the understanding to counsel you in which structure would be best for your organization.
Our business tax lawyers have a thorough understanding of the intricacies of tax laws between states. Differences in state law can also affect choices in business structure. Delaware has well-established case law which provides its businesses with great certainty as to the state of the law. Maryland, however, provides numerous tax credits and other incentives for certain business owners to establish a presence within its borders. Many companies in the Washington, D.C. area operate in Maryland, Virginia, and the District of Columbia, but each has different licensing and reporting requirements. Failure to comply with these requirements can lead to civil and, in some cases, criminal penalties. In short, the choice of how to structure a business generally involves making important decisions at the outset which will affect how a business grows and operates.
With backgrounds in corporate structuring, tax law, and civil/commercial litigation, the business lawyers at JDKatz are uniquely poised to offer comprehensive legal services to any enterprise. Schedule a free consultation using the form on the right to discuss the decisions that can optimize your business structure.