Starting a new business venture can be both an exciting and daunting experience. Failure to address simples issues at the outset could result in significant liability for the company and its founders.
When forming a business, the first step is deciding what type of entity is best depending on structure, liability, tax, and management considerations. Common entities include corporations, partnerships, limited liability companies and joint ventures.
Before forming a corporation it will be important to determine in which state to incorporate as corporations are governed by the laws of the state of incorporation. The state of incorporation determines procedural rules for transactions, including mergers, fiduciary duties of directors and officers, stockholder rights, filing requirements and the amount of fees and franchise taxes due to the state.Formation Documentation and Filings
- Certificate of incorporation
- Shareholder agreements
- Capital raising and financing
- Governance, shareholder relations, and corporate housekeeping
- Legal and regulatory compliance
- Workplace and labor issues with employees, independent contractors, and service providers
- Employment and human resources management
- Employee benefits and compensation
- Intellectual property protection
- Commercial transactions, including product development, production, corporate partnering, advertising, marketing, and sales
- Real estate and leasing issues
- Insurance coverage
- Dissolving or sale of business