Philadelphia Business Formation
The Philadelphia business formation attorneys of Erik B. Jensen will provide you with sound advice on which form of business would best address your needs. Businesses can take many different forms. The most common are:
- Partnerships: Defined as a business organization in which two or more individuals combine monetary investments, skills, and other resources into a company and share in the profits and losses once it is functional.
- Limited Partnerships: This is a business form that combines features of a limited company with those of a partnership and thus provides a tax shelter without creating a separate and distinct legal entity from its owners. One or more partner(s) are usually considered the full, or general partner(s) and the other(s) limited, or nominal partner(s). The general partner(s) bear greater risk and receive greater rewards than the limited partner(s).
- Sole Proprietorships: This is the most basic and common form of business ownership. One individual bears all the risks and reaps all the rewards of running the business, and there is no legal difference between the assets and liabilities of the business and the owner. Such formations usually make for ease of start-up, but may not be the best choice in the long term.
- S-Corporations: Small corporations are a type of business formation that passes the firm’s income through stockholders in amounts proportionate to their investment in the business, that are then taxed according to personal income tax rates. Because of their limited size, they can offer only one type of stock and allow investment from a limited number of stockholders.
- C-Corporations: This form makes a business a completely separate entity from its owners. There may be certain tax advantages that apply to C-corporations over S-corporations.
- Limited Liability Companies: An LLC is a form of company available in some states, including Pennsylvania and New Jersey. Owners of an LLC receive the same limited liability and tax benefits of S-corporations without having to restrict themselves to the size limits required of the S-corporation form of business.
When helping you decide which business formation would best work for you, we consider such issues as ease of start-up and the ability to continue to operate smoothly and profitably for years to come. Our business formation staff includes accountants, due diligence investigators, and other experts who will provide expert input on your particular needs.
Whether you need to draft articles of incorporation, partnership agreements, franchise arrangements, buy-sell agreements, commercial leases, or establish a non-profit organization, the Philadelphia business formation attorneys at Erik B. Jensen, P.C. can help. We can also provide you with advice on the type of business insurance you should consider purchasing. Contact our Philadelphia law firm today and set up a consultation to find out how our business formation attorneys can help you achieve success now and for years to come.
The Philadelphia business law attorneys at Erik B. Jensen P.C. will assist you in forming your corporation and providing legal guidance throughout the incorporation process.
Forming a Corporation – What’s Involved
In general, once you have decided to form a corporation, you need to choose which kind – an S-corp, C-corp, or limited liability corporation. Our attorneys can provide you with advice on which type of incorporation would be best for your planned business.
Articles of Incorporation
You will need to write up and file Articles of Incorporation. These spell out the fundamental information about your corporation, such as:
- The name of the corporation
- The purpose of the corporation
- Number and types of authorized shares
- Shareholder names
- Names and addresses of the officers and directors
- The name of the authorized agent
- The name of the person incorporating the business
The bylaws are spelled out in a document and used to regulate how your corporation will be run. It covers things such as when and how often shareholder and Board of Directors will be held, as well as issues regarding proper voting procedures.
The First Director’s Meeting
The minutes of the first Board of Directors’ meeting will be prepared in advance and cover all the business that will be conducted at that meeting. These will include adoption of the bylaws, issuance of corporate shares, granting authority to open a bank account and begin conducting business as an official corporation.
There are other steps to be taken, depending on the kind of incorporation chosen and Pennsylvania state law. The Philadelphia law firm of Erik B. Jensen P.C. will assist you with each step required to incorporate, so that the process runs as smoothly and quickly as possible.
Feel free to contact us anytime toll free at 866-550-4686, or complete our quick contact web form.