Hot Springs Business Formation Lawyers
Firm provides comprehensive counsel on Arkansas business formation
With a tradition of delivering exceptional counsel to companies since 1875, Schnipper, Britton & Stobaugh in Hot Springs assists Arkansas clients with the legal challenges associated with business formation. Whether you’re looking to launch a new startup or seeking to add to the reach of your reach of your current business, you can rely on us for knowledgeable advice on a wide range of issues. Don’t overlook a potential problem that might cause serious harm down the road or let legal problems bog down your efforts. Our seasoned attorneys are here to help you start on a strong foundation.
Types of business entities
One of the most important decisions you’ll make as you explore a new business opportunity is the choice of a legal entity. Options available under Arkansas law include:
- Sole proprietorships — A single owner who controls all aspects of a business can create a sole proprietorship. These entities are not taxed separately and the sole proprietor is personally responsible for business debts. To protect against confusion with competitors, you can register the name of your sole proprietorship with your county clerk.
- Limited and general partnerships — In a general partnership, each partner is liable for judgments and creditor claims against the business, based on the percentage of ownership they have under the partnership agreement. Limited partnerships are comprised of a general partner who has personal liability and operational control, along with limited partners whose individual assets cannot be reached by creditors. A Certificate of Limited Partnership must be filed with the Secretary of State. No partnerships are subject to separate taxation, but information returns are required by the state and the IRS.
- Limited liability partnerships and companies — Blending some of the benefits of traditional partnerships and corporations, a limited liability partnership (LLP) or limited liability company (LLP) can give you the ability to shield your personal wealth while avoiding corporate taxes and formalities. Depending on your particular needs, we can assist with initial filings, annual reports and tax structure associated with these entities.
- C and S corporations — For both C and S corporations, articles of incorporation must be submitted to the Arkansas Secretary of State or the relevant authority in another state. This distinction is that C corporations are taxed on separate entities and are required to file annual returns, along with other documents relating to corporate governance and operations. For qualifying businesses that opt for S corporation status, income and losses that pass through to the individual owners are reported on their personal returns.
Our practical, common-sense approach takes the mystery out of selecting a legal entity and other aspects of the business formation process.
Helping you determine your business structure
Deciding on the best legal entity for your business should be a careful process. We can help you understand the potential benefits and pitfalls of each option. Factors you might wish to consider when making this determination include:
- Whether a particular entity shields you from personal liability
- The size of your business and the number of workers you expect to employ
- Your ability to comply with corporate governance and filing requirements
- Whether you want the business to be taxed separately
- If you are seeking financing from outside sources
- How many owners there are
- If you intend to sell shares of your company to the public
Choosing the wrong type of legal entity could require corrective action later on and might even threaten your personal finances. When you work with our firm, you’ll gain a clear perspective on the best way to proceed.
Other types of business formation services
Selecting a legal entity is just one critical task that must be completed when you’re starting a new venture. Our firm also assists with essential matters such as:
- Drafting and negotiating contracts
- Reviewing lease agreements and other real estate documents
- Establishing buy-sell agreements among owners
- Preparing employment agreements and handbooks
- Drafting shareholder and partnership agreements
- Establishing rules and filing documents pertaining to corporate governance
- Creating operating agreements
- Developing articles of incorporation and corporate bylaws
- Advising on compliance with rules governing nonprofit organizations
Whatever your specific situation entails, we can alert you to legal obstacles and help you devise a strategy to avoid or overcome them. Our firm offers comprehensive legal support to business owners so that they can concentrate on making the venture a success.
Contact an accomplished Hot Springs business formation lawyer
Schnipper, Britton & Stobaugh in Hot Springs helps Arkansas businesses choose the optimal legal entity available under Arkansas law. You can set up a consultation with a seasoned attorney by calling 501-762-0887 or contacting us online.