Lawyers at BLF assist new ventures and growing businesses with business formation / choice of entity and related contract drafting and applications. The quality of legal representation during business planning and formation can have a far-reaching effect on a company's profits, the personal liability of the owners, and the ability to take advantage of business opportunities.
Business forms, such as sole proprietorships, joint ventures, partnerships, limited liability partnerships (LLP), S-corporations, C-corporations, and limited liability companies (LLC), involve specific benefits and risks, primarily related to taxation, personal liability, and management / operational control. Unnecessarily high expenses from taxation, insurance, and business disputes can drain profits and interfere with operations. Carefully drafted partnership agreements, operating agreements, shareholder agreements, or articles of incorporation can save a great deal of money and frustration down the road.
Consider the industrious person who has a "hobby" business such as making jellies, BBQ sauce, or perhaps an exercise aid, and may sell the product through various outlets including a website they've been able to set up inexpensively. The enterprise may bring in anywhere from a few hundred to a few thousand dollars a year - not bad for a hobby! Some of these part-time entrepreneurs take the view that they can't afford to set up a corporate entity when actually they can't afford not to. "Hobbyists" put a lot of personal information about themselves out into the marketplace when they sell goods. They leave themselves vulnerable to identity theft, legitimate product claims and scam artists who will threaten lawsuits unless their demands are met. How often have we seen news stories about alleged victims finding bizarre items in their restaurant food, or canned beverage, and demanding money? A reasonable business structure can insulate you from these and other potential nightmares as you pursue your part-time passion.
Whether you are contemplating a new venture or are involved in small business planning to increase market share, the attorneys at BLF can help you select the entity that is suited to your situation. We also prepare and file all necessary documentation to establish your business in good standing under state laws and provide assistance with name searches, registrations, compliance with federal, state and local regulations, and preparation and monitoring of all necessary licenses and permits.
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For additional information regarding Business Formation, please contact our Belmont, Massachusetts office and make arrangements to speak with Attorney Brown.