Worcester Business Formation Lawyers Craft Creative Business Solutions
Getting your venture off to a strong start
In the enthusiasm of starting a new business, it is easy to forget about the paperwork involved in meeting regulatory and other requirements. Many entrepreneurs mistakenly believe they won’t need to have formal rules in place to work with their partners. But informal arrangements, even when made with the best of intentions by all parties involved, frequently lead to trouble. Our attorneys at Gould & Ettenberg, P.C. have assisted numerous entrepreneurs, businesses and joint ventures in the Worcester area in formally establishing themselves as business entities. We evaluate your situation to determine which type of entity, if any, best suits your needs and then walk you through the step-by-step process of establishing a new business.
Forming the right business entity
There are numerous types of business entities available under Massachusetts business law:
- Sole proprietorships — Sole proprietors do not enjoy the liability or tax benefits of most formal business organizations. They may, however, be acceptable for some small businesses with little liability exposure and appropriate insurance.
- Partnerships — While general partnerships are rarely used anymore, limited partnerships (LPs) and limited liability partnerships (LLPs) offer important tax benefits and liability protection.
- Limited liability companies (LLCs) — LLCs offer a high degree of flexibility while still providing strong liability protection. They can be fine-tuned to accommodate nearly any type of management arrangement and also provide several options regarding tax treatment.
- Corporations — Corporations are highly formalized and can be difficult to maintain. With the exception of S corporations, they generally subject their shareholders to double taxation. Nevertheless, they do provide strong liability protection and also allow easy transfer of ownership interests.
New formation pitfalls
The most common mistake that business start-ups make is thinking that forming their business entity is the only step they need to take. In fact, there are also numerous tax, registration and licensing requirements that apply to most types of businesses. Companies with employees may even face additional requirements. Our experienced Worcester attorneys can analyze your particular business to determine what regulatory requirements you must meet and advise you as to the best ways of doing so.
The second common mistake entrepreneurs make is choosing the wrong type of business structure. On one hand, many assume that they can save money by operating as a sole proprietorship, only to face personal liability later when their businesses get sued. On the other, many start-ups opt to form corporations without fully understanding the administrative burdens and tax consequences they entail.
Contact a firm that has advised Worcester entrepreneurs for more than 35 years
Our attorneys at Gould & Ettenberg, P.C. are proud to promote economic development in the Worcester area by giving entrepreneurs and small business owners the legal advice they need. Call us at 508-752-6733 or contact us online to set up a consultation with a caring and experienced attorney today. We are conveniently located in downtown Worcester with easy access to both state and federal courthouses as well as convenient parking.