Forming a New Business
Forming a new business can be both exciting and scary as well as overwhelming. One thing is certain, however; it is much easier to get off to the right start than to fix mistakes down the road.
One of the most fundamental decisions is choosing the entity form of the business. We can assist with making the appropriate decision and organizing the business with the IRS and local and state departments. There are various types of entities to choose from, each having its own pros and cons, especially when it comes to taxes and personal liability. Common entities include:
- Sole Proprietorship
- LLC (Limited Liability Company)
- PLLC (Professional Limited Liability Company)
Dissolving a Business
Dissolving a business is just as important as starting one. Making the decision to cease operations can be hard and stressful one, but the job can be even more complex and have long-lasting ramifications for owners if it’s not managed properly.
Depending on the type of entity, dissolving a business can be simple or complex. Factors that impact complexity include:
- Number of stakeholders are a part of the business and disputes that may arise
- Split between majority/minority of owners
- Nature of assets that must be sold
- Need to wind-down debt with creditors
Also, certain tax requirements that must be met when dissolving a business entity as well as filing necessary dissolution documents with the state. Every business dissolution is unique, and the goal should be to determine a fair split of the assets and liabilities while minimizing any future liability.