If you are in business for yourself, you should be thinking about incorporating for several reasons. First and foremost is the protection of your personal assets from liabilities of the business that may arise from creditors or those who are injured or otherwise make a claim against your business. A corporation is a way of shielding your home and personal accounts from claims made against the business. There are also certain tax benefits to being incorporated for both the business and for you personally. The issuance of company stock can also be a way of determining a value of the company and insuring its continued existence for many years.
There are several methods of incorporating. You should always consult an attorney and/or an accountant to determine which is the right method for your business. Our office works on a daily basis with the governmental agencies and tax professionals that are needed to make these important business decisions.
Just as with individuals and families, businesses require planning for their eventual transition to new owners. This change can occur by reason of a death of an owner, his or her disability or a desire to sell to a partner or to a third party. When there is more than one owner of a business, these types of transitions can cause great difficulty unless proper planning has been done to address the many problems that will arise.
We are experienced in drafting the agreements between owners that will eliminate these problems. Issues such as valuing the business, agreeing on the mechanics of a transfer, buying out the heirs of a deceased owner or buying out an owner who wants to sell his share can all be addressed with a Buy/Sell Agreement among owners. Think of it as a will for the business. Without such an agreement, many businesses have fallen victim to infighting between owners and their families.
Life insurance can also play an important role in a Buy/Sell Agreement as it provides the financial means for a surviving owner to purchase the shares of his partner from the partner’s spouse or children. These type of arrangements insure smooth transitions of businesses which translates to peace of mind for the owners and guaranteed security for an owner’s family.
Even after you are incorporated, our office can provide you with the services that are needed to insure that your incorporation remains in good standing and survives any challenges to its valid existence by would be claimants.
SMALL BUSINESS PLANNING