Business Formation and Entity Choice Attorneys in York, PA
Choice of entity is a crucial first step for business startups. The right decision can pave the way for a successful venture, while the wrong decision can cause unnecessary challenges moving forward — choking off the development, success, and future funding of your business.
At MPL Law Firm we begin the process by getting to know you as a client. We learn about your business and the products or services it offers. We discuss your goals. Once we have a firm understanding of what you do and where you want to take your business, we can provide guidance about how best to structure your business from a legal standpoint.
With years of experience and a successful track record advising companies of all kinds, our business and commercial lawyers understand the importance of thorough analysis. We do not rush headlong down any path. We take great care to provide guidance that is customized to the needs of each business we represent.
Our York, PA Business Attorneys Will Help You Explore Every Option
Many first-time business owners feel overwhelmed by the entity selection process. The knowledgeable business formation lawyers at MPL can simplify the procedure by providing insight into the available choices.
This business type is the easiest and least expensive to establish for a one-person operation. The owner retains complete control and makes all the day-to-day and big-picture decisions. The entity ceases to exist upon the death of the proprietor. A potential drawback is that the owner has unlimited liability, which could place their personal assets at risk.
Limited Liability Company (LLC)
The LLC entity combines the operational efficiency and tax advantages of a partnership with the decreased personal liability of a corporation. The organization’s owners, referred to as members, can be one or several individuals, a corporation or even another LLC. While the LLC offers business asset protection, it may not safeguard your personal assets from creditors.
With this business arrangement, two or more individuals share ownership of the business and operate it together. General partnerships are relatively easy to form and dissolve. The owners file and pay taxes at the personal level instead of the business level, and the partners are jointly liable for business debts. When legal disputes arise between partners, applicable state laws resolve the issues.
Limited Liability Partnership (LLP)
The LLP business arrangement is a more complex and formal version of a general partnership. It offers increased liability protection for the partners and has simpler compliance requirements than a private limited company. Because the framework limits the partners’ decision-making capabilities, the LLP can be more attractive to short-term investors seeking more input and control of the operations.
This entity is the most common form of an incorporated business. Its owners are shareholders who are liable only to the extent of their investments. The C-corporation has a separate legal and tax life and pays a designated tax rate. A board of directors manages and controls the organization’s overall direction while officers and employees run the day-to-day operations.
An important distinction between a C-corporation and an S-corporation is that the latter requires the taxation of shareholder income at the personal level. It also limits the number of shareholders to 75, whereas the C-corporation can have an unlimited amount of owners. Moreover, the S-corporation requires strict operational procedures, which could be an advantage or a disadvantage.
Professional Corporation (PC)
The PC is a specialized business entity intended for professionals such as engineers, accountants and health care professionals. Owners may choose to form a PC to get tax breaks that are unavailable to unincorporated businesses or to enable the organization to continue in perpetuity. On the downside, a PC will not protect the owners against personal liability for their professional negligence.
We Also Offer Special Purpose and Business Restructuring Services
Our business attorneys can also help existing companies meet their operational objectives. We can assist with creating a special-purpose entity to facilitate a real estate transaction or acquisition of another company. If you are looking to restructure, we can ensure you are addressing all applicable legal and financial issues.
We Collaborate With Our Clients
When you partner with our business formation attorneys in York, you will receive the attention and service you deserve. We will work closely with you to develop and implement a tailored legal solution to achieve your specific objectives. You are never just another case file at MPL Law Firm.
Call the professional business attorneys at MPL at 717-845-1524 or reach out to us online to schedule an initial consultation today.