The way a business begins can determine how profitable or successful it will be in the years to come. Getting off on the wrong foot in forming your business also could lead to its ruin in months.
To form a business in North Carolina, you have a lot to consider. Taxes can bring down a company as much as any other cause, which is why choosing the correct form can make all the difference for you.
Sole proprietorship or partnerships have been the choices for small businesses, but these have some drawbacks. While you control your company or organization, there is no line drawn between personal and business assets. The risk is that a lawsuit – be it a creditor or other plaintiff – puts your personal and business assets on the table for judgement. You could lose everything if you’re not careful.
Legal Liability Company entities have become more popular because they offer greater protection from liability. They come in several forms:
Each of these offers benefits and drawbacks. Your specific business and goals will help determine if any of these LLCs will work best for you.
Corporations are another form a business that involve shareholders. These are not limited, unlike LLCs which do expire. Corporations protect the owners from legal liability and allow you to attract investors.
On the downside, corporations face greater tax liability. You also must understand the legal formalities required.
Contracts are the lifeblood of a business’ security. Having a document drafted that outlines favorable terms that won’t lead to greater problems down the road is an absolute necessity. The contracts you sign with vendors or suppliers have a great impact on your bottom line as well.
There are so many considerations for starting your business, it could distract you from the day-to-day operations necessary to opening the doors. Don’t let those issues stop you from taking the proper approach to matters with an attorney. An attorney who understands the tax implications and other related issues will give you an objective look at what could turn your business into an empire or sink it into bankruptcy.
Thomas J. Neagle, of The Neagle Law Firm, provides solid solutions for prospective business owners across North Carolina. He brings insights into the details you may inadvertently overlook.
Thomas has years of legal experience behind your business law matter. His firm offers comprehensive representation and advice on most areas of business law including:
Before you make your next move, contact an experienced business formation attorney at The Neagle Law Firm in Carrboro, NC. Attorney Thomas J. Neagle has helped businesses achieve their goals through sound legal solutions. Call or fill out the form on this website to arrange a meeting with Thomas that could help you make a difference for the future of your business.