Both legal and tax planning is critical to the proper planning of a business entity. Entrepreneurs and business owners may elect to have their business taxed as a separate entity (a C-corporation) or as “pass-through entities” (S-corporations, partnerships, joint ventures and limited liability companies), in which the income tax effects of the business organization flow through to the owners. In such a case, the owners themselves pay taxes for the business entity.
The legal rights and obligations of owners will vary depending on the choice of entity. Careful consideration of matters such as liability for entity debts, voting rights, management rights, ability to transfer ownership interests, and limitations on the number, type and rights of owners is essential.
Other structuring considerations may include multiple entities with common owners (brother-sister entities) or tiered entity structures (one entity owning another entity). Frequently, holding companies and subsidiaries are used to provide common management and limitation of legal liability.
Not only are we able to help you with issues surrounding the formation and organization of your business, our business attorneys are also skilled at executing most business transactions and have extensive experience in the negotiation and preparation of a wide variety of business agreements, including employment agreements, shareholder agreements, buy-sell agreements, purchase and sale agreements, deferred compensation plans, stock option plans, redemptions agreements, merger and reorganization agreements, dissolution and liquidation documents and other business and commercial agreements.
