Business Formation & Choice of Entity

Cleveland Attorneys Advising Clients on Business Formation and Incorporation

Starting a new business is an exciting challenge. Of course, all entrepreneurs understand that every new venture involves risk. The more sophisticated understand that the business entity they choose to form at the beginning of the enterprise can mitigate risk — particularly risk of personal liability should your business fail.

Don't put yourself at risk of losing your home and savings if your business venture is not as successful as you expect. With sound advice about business formation, you can put your new business on solid footing while limiting your personal exposure to risk and structuring your taxation as favorably as possible.

At Aggers Joseph Co., LPA, we have been practicing business and commercial law for more than 15 years. We focus on helping our clients reach their goals by providing knowledgeable, cost-effective counsel and representation in every aspect of business law.

Contact our Cleveland law office online to schedule a consultation about business formation with an experienced lawyer. Or call (216) 765-8520.

The Basics of Business Formation

When you are starting a new business or reorganizing one, your choice of entity — the legal structure of your business — is what determines a great deal of how your business must operate. Each business entity was created with a different balance of general and personal liability, legal requirements, control, flexibility, and other characteristics. Your choice of entity will also have an impact on how your organization will be taxed.

The major options for business formation include:

• Corporations, including s-corporations, c-corporations, professional corporations, nonprofit corporations and others
• Partnerships, including general, family and limited liability partnerships (LLPs)
• Limited liability companies (LLCs)
• Franchises
• Joint ventures
• Sole proprietorships

You and your Aggers Joseph attorney will discuss your goals for the business, whether you have investors and who they are, who will be involved in managing the business, management style, tolerance for risk and regulation, the likely startup and operational costs, whether the company will own substantial intellectual property, and similar issues. From this information, your lawyer can recommend the business entity that is likely to be the best fit.

As part of the business startup process, we can also provide assistance with fundamental operational issues, such as:

• Developing personnel policies and employee manuals
• Drafting enforceable confidentiality and noncompete agreements
• Developing policies to protect your intellectual property

Business Formation is the Cornerstone to Your Success

Many new businesses fail during the first year due to market forces, lack of planning, or improper capitalization. Make sure that your business has the best chance to succeed while limiting your personal risk. Call a Cleveland business attorney at Aggers Joseph Co., LPA at (216) 765-8520, or contact us via e-mail or fax to set up an initial consultation.