Business Formation Attorney, Lowell, MA
Whether you are a sole proprietor, or whether you are planning the formation of a partnership, the first step of any business is the business formation procedure. It is a legal application which registers your business as a legal entity and allows you to operate lawfully.
Business formation dictates the personal liability of the founders, how the taxes are paid, and if the business aligns with the set business formation law. Business formation attorney Stephen Holmes at the Holmes Law Offices in Lowell, MA can assist you with this process.
Corporation Formation (S-Corp, C-Corp)
Most businesses are incorporated as C-Corps or S-Corps. Each type of corporation has its own strengths and weaknesses.
C-Corp vs. S-Corp
C-Corps have the following features:
- Owners pay personal income tax on income
- Businesses must pay corporate income tax
S-Corps have the following features:
- Owners pay personal income tax on profits
- All business income/loss is passed through to owners each year.
- No more than 100 shareholders
- Shareholders must be U.S. citizens or resident aliens
Based on your business needs and goals, a business formation attorney will be able to decide which type of corporation is better for you.
Formation of Professional Corporations
Professional corporations are a form of business used by licensed professionals such as attorneys, architects, engineers, public accountants, and physicians. Unlike traditional corporations, professional corporations do not protect the owners from personal negligence or malpractice. However, professional corporations ensure that no one owner is personally liable for the misconduct of any of the other owners.
Experienced business formation attorney like Attorney Stephen Holmes will be able to assist you in the formation of a Professional Corporation and will ensure that you and your license are protected and properly registered.
Limited Liability Company Formation
The formation of a limited liability company carries its own advantages and disadvantages, where it is most often compared to an S-Corp or a C-Corp. A business formation attorney from the Holmes Law Offices will be able to advise you on a case-by-case basis, but a general comparison is as follows:
S-Corp Vs. LLC
- LLCs can have an unlimited number of members
- Non-U.S. citizens/residents can be members of the LLCs
- S-Corps cannot be owned by corporations
- LLCs are allowed to have subsidiaries without restriction
- S-Corps cannot issue classes of stock with different financial rights
C-Corp vs. LLC
- LLCs have a choice of taxation structure
- LLCs are owned by members, C-Corps by shareholders
- Profit or loss are passed directly to members of an LLC
- LLCs are more suited to smaller businesses with few shareholders
Non-profit organizations are tax-exempt or charitable business entities. In order to ensure that a non-profit organization remains tax-free and is able to operate legally, it is highly recommended that an experienced business formation attorney assists with its creation and registration.
Formation of Partnerships
When two or more parties come together and agree to co-own a business, a partnership is formed. Various partnership arrangements exist with a varying range of profits, executive abilities and liabilities. Not all partners need to be involved in the day-to-day operations of the business, and as such partnerships often are subject to favorable tax treatment.
Consult a Business Formation Attorney
Want to form a new company? Consider the services of Attorney Stephen Holmes.
Based in Lowell, Massachusetts, Attorney Holmes has an extensive background in business, management, and technology. He served as a VP of Engineering at two high tech companies in the 80’s and 90’s. As a business formation attorney, his goal is to bring high quality legal services to clients who cannot afford the services of the big law firms. He believes that communications between attorney and client should be crisp, clear, and voluminous.