There are many different ways to form your business.  Whether your business is small or expanding quickly, all business owners should consider the structure of their business.  Setting up your business as a Limited Liability Company or Corporation  will limit the personal liability of a business owner, whereas if you set up your business as a Sole Proprietorship or General Partnership you are not protected from personal responsibility for debts and liabilities of the business.

Even small business owners should invest in speaking with a business law attorney to understand what their different options are for business formation.

Without the protection against personal liability of a Limited Liability Company or Corporation you can be sued personally for any debts and liabilities incurred by your business.  This means that you will be responsible for business losses including tax deficiencies, lawsuits and back wages in the case of employment issues.

Many business owners set up their business as a sole proprietorship and do not understand that they are still responsible for debts and liabilities, even with a DBA.  Setting up your business with the proper business structure is key to protecting the assets and profits of your business.  Contact a Business Law Attorney today to help bring your business to the next level and protect your interests.

S corporations and C corporations are treated differently for tax purposes by the IRS.  C corporations are usually set up by large, publicly-held businesses.  C corporations face double taxation on profits whereas S corporations avoid double taxation but still insulate shareholders from corporate debts.  However, C corporations must meet certain requirements to qualify including that the business must be domestic, must have no more than 100 shareholders, must not have any corporate shareholders and must not have any non-resident alien shareholders.

Before deciding to set up your business as an S corporation or C corporation, contact a Business Law Attorney to discuss your options.

It is true that there are requirements for filing and tracking certain items when you set up your business as a corporation.  However, a business law attorney can help you set up your business and keep track of the required documents.

For example, after incorporation businesses must get federal and state tax identification numbers, issue shares of stock, establish and maintain corporate books and records, conduct an initial meeting of the board of directors, follow the rules set out in the articles of incorporation, keep corporate minutes and maintain registration with the State of Minnesota and file annual tax returns. 
A business law attorney can not only help to set up your business but provide ongoing assistance to keep up with corporate reporting requirements and paperwork.

An EIN is an Employer Identification Number.  This is a number issued by the Internal Revenue Service (IRS).  This number is used by businesses to apply for bank accounts and to pay payroll taxes when you hire employees.  An EIN is the equivalent of a Social Security Number, but for a business instead of an individual.

Even small business and sole proprietors should apply for an EIN with the IRS to avoid using a personal social security number.  Applying for an EIN with the IRS is easy.  However, using an EIN correctly is not as easy and if you are starting a business you should contact an attorney for assistance setting up your business.

When served with a lawsuit you should call an attorney immediately.  You only have a limited amount of time to respond and the sooner you contact an attorney the better an attorney can protect your business.  A business law attorney can help you determine strategic, meet deadlines, negotiate the lawsuit and go to court if necessary.

Many business owners fail to contact an attorney in a timely fashion due to the expense that they will incur.  Calling an attorney as soon as possible is the best way to protect you and your business.  A lawsuit that you fail to answer to can go to judgment and then a lien can be placed against the business and personal assets subject to pay a judgment if you have not set up your business with a structure that protects your personal assets.

Selling a business, particularly in a difficult economy, is a serious undertaking.  A seller needs to determine a price for the business, understand the tax consequences of selling, search for potential buyers, negotiate a deal, create and sign a sale agreement, close the sale and file with the IRS.

A business law attorney can help you with all of these steps.  An attorney can negotiate the deal for you and make sure you get the most money you can out of the business and assist with the due diligence process and make sure all the paperwork is in proper order.

Buyers of businesses, whether a new business, franchise or creating a new business, need to carefully plan before undertaking such a large purchase.  Buyers need to define the type of business they want to buy, find a seller or property, complete due diligence by conducting research and review financial records, negotiate the sale, value the business, get financing and complete the sale.

A business law attorney can help you review financial records and negotiate the best price for you so you can concentrate on creating the business and earning profits.  Before you buy a business, be sure to contact an attorney for assistance.