New Bedford Business Formation Lawyer

In the excitement of starting a new business, it is common to experience some setbacks early on. Entrepreneurs are often so focused on enacting their business plan and securing financing that they may miss important tax, property, and employment law requirements.

Getting these details right when starting a business can save money, maximize options, and potentially prevent disputes later. A New Bedford business formation lawyer could help you protect your business against risk and avoid problems in the future. Call a seasoned business attorney at our firm today to get started.

Which Kind of Business Form Is the Right One?

The right business form fits a business’s current plans and considers potential risks and growth options. These considerations include how a company is managed, owned, and operated. Entrepreneurs must choose a formation type and fill out the appropriate form when starting their business. In general, their options are:

  • Sole proprietorship: Single owner, single operator, no legal distinction between the owner and the business, no protection of personal assets to pay for business debts
  • Partnerships: shared ownership, shared operation, profits, and losses are shared and reported as property of the owners
  • Corporations: Ownership and operation are held by an entity, business owners own shares or portions of the company, profits and losses are owned by the entity, and salaries or dividends are paid to the business owners
  • LLC

Each of the three main forms of business operations has different subtypes. For example, nonprofit organizations are a form of corporation. There are various ways to limit liability in the last two forms, such as through limited liability partnerships (LLPs). Some states, like Massachusetts, have a fourth form called a business trust, which combines aspects of all three entities. Experienced business formation attorneys in New Bedford could help people select the most optimal form when starting their business.

How Do Businesses Incorporate?

Each form of business incorporates differently. Most forms require that the company create a set of expectations for how the company will run, usually in a set of bylaws. Some forms, like partnerships, may need an agreement on how the business will run and how shares will be handled in the event of a death or dispute. By ensuring these documents are prepared at the company’s start with care, diligence, and thought, many companies can avoid disputes later. New Bedford lawyers with experience in business formation could help businesses spot potential risks and avoid them when drafting these operating documents.

Registration

Initially, companies may also have to register with the state and federal tax agencies before they begin making sales or bidding for work. This usually starts with registering a business name with the state. Even those deciding on sole proprietorships may have to file a certificate with the state declaring the name of their business and the assumed name under which it does business.

Company ownership also drives another set of registrations. Some companies may have to register with the state or federal securities office, or both, if their methods of offering investment in their company could be considered a security.

Other Considerations

Other important considerations when starting a business might include:

  • Determining whether it is necessary to obtain trademarks
  • Ensuring employment applications contain specific language
  • Determining whether it is necessary to obtain licenses with federal, state, and city offices to perform services

Skilled business formation attorneys in New Bedford could address these additional considerations and determine whether they apply to a specific business.

Call a New Bedford Business Formation Attorney Today

The sheer number of forms that may be involved in the business formation process can feel overwhelming. Instead of getting deflated by the number of steps to start a company, enlist the help of an attorney experienced in business formation. A New Bedford business formation lawyer could help you maximize your tax options, protect your trademarks and logos, and help you negotiate contracts with your employees and co-owners. Call today to schedule an appointment and get advice on better future business planning.

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