If you are starting a new business, it’s important to properly form and maintain your corporate entity. Otherwise, a creditor could pierce your corporate shield and you would be personally responsible if your business is sued.
At Breeding Olinzock Carter Crippen, our attorneys form limited liability companies (LLCs), corporations, partnerships and other types of business entities. We also draft partnership agreements, shareholder agreements, noncompete agreements and other contracts that can help you avoid problems down the road.
Protecting You From Liability
Without a corporate shield, you are personally liable for the results of your business. Everything you own could potentially be at risk if your business fails or is sued. If you create an LLC or corporation, only that business entity is at risk.
If you already own a business and wish to launch a new business venture, you should create a separate business entity for the new venture. Significant assets such as commercial real estate should also be owned by a corporate entity for maximum protection of those assets.
To be effective, business entities must be properly maintained. Many people who form corporate entities do not receive proper advice about what they need to do each year to maintain their liability shield. Our lawyers can help ensure that you actually receive the protection your corporate shield provides.
Helping You Obtain Favorable Tax Treatment
Business owners who incorporate can face double taxation on earnings: first as a business entity and then as a shareholder. By creating an LLC or S corporation, you can pass through taxes to yourself as an owner or shareholder, eliminating corporate taxes. There are certain IRS requirements you need to meet to preserve your tax status for a subchapter S corporation.