Business Law with Radom & Wetter
Starting a business can be very rewarding, both personally and financially. It can also be devastating if not setup correctly, in full compliance with business law. One of the first decisions a person needs to make when considering creating a new business is what type of business, in legal terminology, it will be. Some business models have natural answers to that question. For example, many car dealerships operate as Limited Liability Corporations, and many businesses that are now corporations operated as a sole Proprietorship for years before incorporating. Even if you are 100% certain you want the protections a corporation can provide its owners – what type of corporation best fits your business model and its owners? LLC? Or, does a C Corporation or S Corporation offer a better choice?
What type of legal business entity is best for your business can only be answered after a long conversation with a knowledgeable, experienced attorney, who will interview the business owner to ascertain what the business goals are, in addition to the owner’s future plans. There are multiple considerations to discuss.
For example, assume an owner is convinced a C Corporation is the best fit for their business because they tend to provide better legal protections (in theory and only for specific types of counter claims) than S Corporations. Did you know that C Corporations also typically suffer what is known as “double taxation” on income instead of “pass through” income like S Corporations? All corporations issue stock, and most can issue preferred stock. Sometimes preferred stock is better to own than common stock, but that answer is situation dependent.
In fact, the answers to any “how should I do this with my business” question is situational dependent, and the only to determine the correct answer for your situation is to discuss your question with a knowledgeable attorney with extensive business law experience.
The attorneys of Radom & Wetter provide assistance and advice for the formation of new business entities, including corporations, limited liability companies, and partnerships. We will help you get your business off to the strongest possible start by understanding the nature of your business and advise you on a number of critical issues important to any business including:
- Employment matters
- Contracting issues
- Operating agreements
- Leasing, and many more.
We help business owners and entrepreneurs to establish the entity, in addition to guiding you through other important issues relevant to your business practices and procedures. Examples include, important details impacting your business’ success such as:
- Undertaking personal guarantees.
All of these topics should be reviewed with legal counsel.
Business planning demands a good knowledge of all potential options and possibilities. Advising you of your legal options and imperatives is a critical aspect of good legal representation. The attorneys of Radom & Wetter have decades of experience to guide through the often confusing and challenging course of creating a new business. The best defense is thoughtful planning and anticipation of unforeseen calamite that often sabotage a new business before it can succeed. It’s a fact that most new businesses fail with the first five years, many times that failure is due to poor planning and in adequate legal advice. Don’t let your new business become a statistic. Call Radom & Wetter today and let us help your business become one of the hundreds of successful businesses we have helps establish during the past thirty years.
Contact Radom & Wetter
If you require professional legal advice and representation regarding business issues anywhere in New Jersey, make sure your legal rights are protected by seeking the legal advice of an experienced business law firm. Contact us at 908-707-1500 or 973-867-7053 or use our Contact Form.