Helping Business in the Local Community for Over 20 Years
The law office of Joseph H. Ostad takes great pride in helping entrepreneurs fully realize their dreams and passions by getting their business off the ground. The first step requires setting up a corporate charter. The type of formation you choose now will determine your company’s structure, tax burdens and financial arrangements for a long time to come. That’s why it’s so critical to understand your options before doing anything else.
Many types of corporate formations are available. These are the most common:
A general corporation is often referred to as an open corporation because it can have an unlimited number of stockholders. It gives an owner several distinct advantages such as tax free benefits on insurance, travel and retirement plan deductions…personal liability protection whereas personal assets are protected from business debt and liability… and a way to raise capital through the sale of stocks and bonds. On the downside, a C-Corp comes with more state and federal regulation and more legal formality for incorporation.
A close corporation is an entity designed for a sole-proprietor or small partnerships. Although it is similar to a general corporation, there are some significant differences. For example, a close corporation is limited to certain number of stockholders. And not all states recognize close corporations.
An S-Corp is similar to a general corporation except it offers a way to get special tax status and avoid double taxation of income and dividends an owner of a general corporation may face. There are several distinct restrictions on S-Corps as compared to C-Corps. But S-Corps certainly give certain parties — such as small businessmen and sole proprietors — distinct tax advantages.
An LLC is a partnership with corporate advantages. It is often the preferred choice of many small business owners and entrepreneurs because it offers liability protection, minimum IRS restrictions, and greater organizational flexibility. The one major disadvantage is that they often have a limited life.
As you can see, there are pro’s and con’s to each entity. And the type that’s best for your business may not be best for someone else’s. That’s why during your initial consultation we’ll spend plenty of time listening to your business proposal before making any recommendations. Then, we will walk you through your options, clearly explaining each one in detail. That way, you can decide what arrangements are best for you and your business.
In addition, once you choose an entity, several important documents will need to be drawn up. These include articles of incorporation, bylaws, operating agreements and possibly stock certificates. Our law office makes certain the correct documents are created and filed in a timely manner.
Our primary goal is to get you “open” for business as quickly as possible. Throughout the process, we’ll work closely with you and your partners to cover all the details and ramifications of setting up business in your particular sector, county, city or state. We’ll fully review and explain all necessary documentation and requirements. At the same time, we’ll discuss potential pitfalls so we can avoid them before they arise.
Before long you’ll be armed with all the necessary documentation needed to open your doors and complete your first transaction.
Of course, setting up a corporate formation is only the beginning. As your company grows, you’ll most likely need additional business services such as:
As you’ll soon see, exciting business opportunities and new ventures will require guidance. That’s where our experience can help. Throughout the long and successful life of your business, the law office of Joseph H. Ostad can play a vital role in handling your important business law matters and helping your company grow. Joseph H. Ostad has been representing companies from start-up to maturity for the better part of the past 20 years and will help you and your business venture moving forward.
Make no mistake: When it comes to corporate formation experience matters most. The law offices of Joseph H. Ostad have been helping entrepreneurs and business owners in the Baltimore Washington metropolitan area for more than 20 years. We’ll handle each step of the process professionally and quickly. We’ll work hard to get your business off the ground and make sure you are prepared to meet the challenges ahead. We’re ready to help you launch your business and reap the rewards of your labor. Please contact us today for a free consultation. You can call 800-320-0080 and talk to us directly or click here to contact us online and schedule an appointment for our Rockville or Baltimore offices.