Philadelphia Business Formation Lawyer
At Ellenberg Law Group, we have helped many business owners get started by helping them choose a business form and drafting appropriate foundational documents. We can also help any business owner who seeks to transition their business to a different entity form, perhaps to improve its attractiveness to investors. Please contact one of our Philadelphia business formation lawyers today to learn more about our services.
Considerations when Forming a Business
Launching a business is an exciting experience, but you need to give considerable thought about your business entity structure. Choosing the wrong business form not only exposes you to legal liability, but you might struggle obtaining funding.
Pennsylvania makes many different business forms available. Choosing the right one is a multi-step process. Although many people pick the business structure which requires the least paperwork, that could be a serious mistake. Instead, entrepreneurs should think about their goals, as well as the risks involved.
Some of the most popular forms are:
- Sole proprietorship. This is the easiest to form. You use your Social Security Number as your tax ID, and no paperwork is required. Unfortunately, you will be personally liable for business debts and obligations, which means someone could sue you and take personal assets.
- Two or more people can form a partnership almost immediately. Each partner, however, is personally liable for the partnership debts and obligations.
- Limited partnerships. One or more partners might want to provide capital but not be involved in running the partnership. A limited partnership is an attractive option.
- Limited liability partnership. This type of partnership provides partners with limited liability protection is popular for that reason. However, it requires more paperwork that you file with the state to form.
- Limited liability company. An LLC is a popular choice. It is a flexible entity which provides limited liability protection and pass-through taxation to owners.
- S corporation or C corporations. Corporations are owned by shareholders who enjoy liability protection from corporate liabilities. Some small corporations can be formed as S corporations, which provide tax advantages.
- Nonprofit corporations. Most nonprofits have a charitable or educational purpose. The owners do not benefit financially from corporate profits but enjoy certain tax advantages.
Once you settle on an entity form, we can help draft necessary documents that will allocate decision-making power and determine how ownership interests can be transferred. Without these documents, many businesses flounder, and disputes could doom your enterprise. We can help draft:
- Partnership agreements
- Operating agreements
- Corporate bylaws
- Nonprofit bylaws
- Buy-sell agreements
Our firm can also assist with performing a name search, registering a name, and securing necessary permits to operate.
Contact Ellenberg Law Group Today
You have a great business idea. Now you need the legal tools to make that idea a reality. Forming a business is the first step in the right direction.
Getting your business off the ground isn’t easy. Many entrepreneurs are swamped with the day-to-day business and have little time to think through complicated legal issues. Let us handle the legal side of things. Call Ellenberg Law Group today to speak with an experienced Philadelphia business formation lawyer.