Business Formation and Succession Planning

---

Selecting an appropriate business entity for your business is a foundational legal decision. This structure you choose affects liability exposure, governance, taxation, and how ownership can be transferred over time. 

At Peters & Krown, we advise clients on entity selection and ownership structuring as part of our broader legal practice, with particular attention to long-term planning and coordination with estate plans. 

Choosing the Right Entity When Starting Your Business

We assist clients in evaluating and forming common business entities, including:

• Partnerships: businesses owned by two or more individuals. General and limited partnerships allocate management authority and liability differently depending on structure. 
• Limited Liability Companies (LLCs): a flexible entity that generally provides liability protection to its members while allowing a range of management and tax structures.
• Corporations: legal entities owned by shareholders, typically used where a more formal governance structure or capital raising is anticipated. 
• S Corporations (Tax Election): certain eligible entities, including corporations and LLCs, may elect to be taxed under Subchapter S of the Internal Revenue Code. This is not a separate legal entity type, but a tax classification that can affect how income is reported and distributed. 
• Nonprofit Organizations: entities formed for charitable, educational, religious, or other qualifying purposes. These organizations are subject to specific formation, governance, and compliance requirements, and may seek tax-exempt statues under federal and state law.

Choosing the right entity type depends on a variety of factors, including liability considerations, administrative complexity, tax treatment, and ownership structure. We work with clients to identify an appropriate structure based on their objectives.

Business Succession Planning

For business owners, succession planning is often one of the more complex aspects of estate planning. The goal is to provide for continuity of ownership and management while minimizing disruption and potential conflict. 

We assist clients in structuring succession plans that align with both business and personal planning objectives. Depending on the circumstances, this may include:

• buy-sell agreements governing transfers among owners
• transfers of interests down to the next generation of owners
• coordination of business interests with wills and revocable trusts
• planning for incapacity and management transitions

Coordination with Other Advisors

Business formation and succession planning often involves complex legal, tax, and financial considerations. Our role is to address the legal structure and documentation and to coordinate with a client's existing advisors, including accountants and financial professionals, as needed.

Working With Our Office 

At Peters & Krown, we understand that every business is unique, and our attorneys work closely with clients to develop customized solutions that meet their individual needs and goals. Whether you need assistance with the formation of a new business, succession planning for an existing business, or ongoing legal support, our team is here to help.

Contact our office today to schedule a consultation and learn more about our business formation and succession planning services.