BUSINESS FORMATION AND SUCCESSION PLANNING

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As a business owner, it's important to choose the right type of business entity to protect your personal assets and minimize liability. At our law firm, we offer comprehensive business formation and succession planning services to help our clients choose the appropriate legal structure for their business and plan for the future.

Choosing the Right Entity When Starting Your Business

We understand that choosing the right business entity can be a complex decision with significant legal and tax implications. That's why our experienced attorneys can provide guidance on the different types of entities available, including sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.

• A sole proprietorship is the simplest type of business entity, owned and operated by a single individual. 
• In a partnership, two or more individuals own and operate the business. Partnerships can be general or limited, and the level of personal liability varies based on the type of partnership.
• LLCs are a hybrid business entity that offers the liability protection of a corporation with the flexibility of a partnership. Owners are referred to as members, and their personal liability is generally limited to their investment in the company. LLCs can be taxed as a partnership, sole proprietorship, or corporation.
• Corporations are a separate legal entity that is owned by shareholders. Shareholders have limited liability and are not typically personally liable for the debts and obligations of the corporation. Corporations are generally taxed as a separate entity, and shareholders are subject to double taxation on dividends and capital gains.

Choosing the right business entity depends on a variety of factors, including liability protection, tax implications, and management structure. Our attorneys can guide you through the decision-making process and help you choose the entity that best meets your unique needs and goals.

Business Succession Planning

In addition to our business formation services, we also offer comprehensive business succession planning services to help business owners protect their businesses and ensure a smooth transition of ownership. Succession planning involves creating a plan for the transfer of ownership and management of a business to the next generation of owners, and is a critical part of estate planning for business owners.

Our attorneys can help you create a comprehensive succession plan that takes into account your unique circumstances and goals. This may include drafting buy-sell agreements, creating trusts to hold business interests, and developing a comprehensive estate plan that addresses the transfer of ownership of the business. We can also assist with business valuation and tax planning strategies to minimize the tax implications of transferring ownership of the business.

Buy-sell agreements are legal documents that outline how the ownership of a business will be transferred in the event of a triggering event, such as the death, disability, or retirement of an owner. Buy-sell agreements can help ensure a smooth transition of ownership and avoid disputes among business partners or family members.

Trusts can be a powerful tool for business owners in succession planning. They can help ensure that the transfer of ownership of a business is handled efficiently and according to the owner's wishes. Our attorneys can help you create a trust that holds your business interests and outlines how they will be distributed to your chosen beneficiaries. We can also assist with ongoing management of the trust to ensure that it operates effectively and in compliance with state and federal laws.

Valuation is a critical aspect of determining the fair market value of a business and can impact the price paid for the transfer of ownership. Our attorneys can assist with business valuation and provide guidance on tax planning strategies to minimize the tax implications of transferring ownership of the business.

Contact Peters and Krown Today

At Peters and 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 with one of our experienced attorneys and learn more about our business formation and succession planning services.