Starting a business involves a large number of legal aspects that are best when handled by a reputable attorney. Understanding exactly what type of structure your company should be, as well as what legal requirements it must follow, can be overwhelming when you try to handle it on your own. The legal paperwork and details that go into it need to be properly executed for your business to legally operate. Understanding business law in Lafayette, IN, can be confusing, which is why finding a reputable attorney is essential.
Partnerships
Partnerships offer more flexible benefits for business owners than a standard sole proprietorship. However, partnerships can become complicated if things do not go the way you planned, which is why it is important to have an attorney knowledgeable in business law in Lafayette, IN, on your side to help you create or dissolve your partnership successfully. Creating the most successful partnership relies on the important components of the business partnership agreement. Having a legal agreement prepared ahead of time will save you headaches down the road. The various components of the agreement include how the profits will be shared, how partners get paid and how assets are distributed upon dissolution of the partnership, to name a few.
Corporations
Forming a corporation is complicated but offers many benefits other structures do not provide. The corporation is separate from its owners, eliminating any personal liability for the owners in regard to debt, including tax debt. The corporation has a board of directors, as well as shareholders, all of whom have a stake in the company. There are various complex laws that a corporation must abide by to remain legal. A corporation can live forever, even in the event of the death of an owner or bankruptcy of the corporation.
Limited Liability Company
A limited liability company provides the benefits of a corporation and a partnership into one company, taking any personal liability off the owners. The LLC is different than a partnership because the division of profits can be distributed however you designate. In a partnership, they are typically split 50/50. The LLC is easier to operate than a corporation because there are less restrictions and regulations, including eliminating the need to report minutes. There are certain legal requirements the LLC needs to abide by that makes it essential to consult with a reputable attorney who is knowledgeable in business law in Lafayette, IN, before creating your LLC.
