New York Business Formation Attorney

When it comes to starting a business, there are usually several options available. By consulting with an attorney, business owners will be able to understand the characteristics that distinguish these entities and how to use the differences to benefit their business. 

Starting a business is an exciting time. Working with Leo Fraser, Attorney at Law, ensures that the structure of your business is aligned with your expectations. Consulting with a business formation attorney will ensure that the business is properly formed the first time around. 

Empowering businesses, entrepreneurs, and individuals with trusted legal counsel since 1979.

How to Form a Business? 

Everything from day-to-day operations to taxes and how much of your personal assets is at risk is influenced by the business structure you choose. You should choose a business structure that gives you the right balance of legal protections and benefits. 

Your business structure influences the taxes you pay, your ability to raise capital, the paperwork you must file, and your personal liability. Before you can register your business with the state, you must first choose a business structure. 

Most businesses will also need to obtain a tax identification number and apply for the necessary licenses and permits. Because of the complexities that can arise when deciding how to form a business, it is always advisable to consult with a business formation attorney.

Types of Business Formations

There are many ways a business can be formed, and the most common for first-time business owners are sole proprietorship, partnership, LLC, and corporation. 

Sole Proprietorship

A sole proprietorship is simple to establish and provides you with complete control over your business. Sole proprietorships do not create a distinct business entity. Sole proprietorships are a good option for low-risk businesses and owners who want to put their business idea to the test before forming a more formal company. 

Partnerships

Partnerships are the most basic structure for two or more people to jointly own a business. An LLP shields each partner from debts owed to the partnership. They are not liable for the actions of other partners. Partnerships are generally used by professional groups such as attorneys and accountants. 

LLC

An LLC allows you to enjoy the advantages of both the corporation and the partnership business structures. In most cases, LLCs shield you from personal liability. Your personal assets will not be jeopardized if your LLC goes bankrupt or is sued. LLCs can be a good choice for medium- to high-risk businesses, owners who have significant personal assets that they want to protect, and owners who want to pay a lower tax rate than they would with a corporation. For individuals considering an LLC entity, consider consulting with a NYC LLC lawyer.

Corporations

Corporations can be more involved and require a little more research because of the options available. Businesses can choose to register as a C Corp, S Corp, B Corp, closed corporation, non-profit, or co-op. The differences between them can be minimal but greatly affect how a company operates. If you choose to register as a corporation, you should consult with a corporation attorney in NYC to go over the details and differences of each category.

Hiring a Business Formation Attorney 

Forming a business can be an exciting time, but it can also come with a lot of risks. Choosing the type of business formation can decide your business’s future. This is not a light-hearted decision, which is why employing a business formation attorney is often required. 

Leo Fraser, Attorney at Law, will not only help you decide what is best for your company. He can also help you properly register your company, whether you choose an LLC, LLP, LP, or some form of a corporation.