Legal Protection for New Businesses
Laying the proper legal foundation for a new business is critical to insulate you from personal liability, to ensure that you have legal protections you need, and to minimize your tax obligations. At Sobel, Poss & Moore in Nashville, Tennessee, our business formation attorneys will take the time to understand your business model and objectives, identify an appropriate formation to meet your needs, and properly file necessary documentation on your behalf.
Business Organization in Tennessee
There are four basic business organizations recognized in Tennessee: Corporations, Limited Liability Companies, Partnerships and Sole Proprietorships. With each organization comes separate benefits and liabilities. Our office has experience in handling each type of organization from the starting of the organization until its termination. The following is a brief explanation of these organizations along with some of their derivatives.
- Corporations: A corporation is a legal entity, with the power to sue and be sued, to hold property and to enter contract in its own right. In the eyes of the law, it is separate from its shareholders, officers and directors, and their liability may be limited. Corporations have many formalities which must be addressed prior to formation and during its duration. Advantages of a corporation include limited liability and formal structure.
- Limited Liability Companies: A limited liability company is very similar to a corporation without the formalities. It requires that the structure of the LLC is either member managed or board managed. This is becoming the most frequently used business organization for small businesses. It provides corporate protection without the corporate hassle.
- Partnerships: A partnership is an association of two or more persons to carry on as co-owners of a business for profit. This organization is less demanding in its technical aspects and is not a shield for liability. Each partner is jointly liable for the debts and obligations of the partnership. A partnership is formed as soon as two or more people associate to carry on as co-owners of a business for profit.
- Sole proprietorship: This is the most basic and fundamental business organization. Most businesses are a sole proprietorship. No formalities are required for starting a business. Some local governing bodies may require a business license, but besides that, it is when an individual starts a business for profit. The liability of the business rests on the business owner.
These are the most common business organizations and our Nashville business formation lawyers will be happy to meet with you and answer any questions you may have regarding setting up a new organization, help with an existing organization or assist you in terminating or dissolving an existing organization.
Ongoing Business Counseling
In addition to formation and start-up operations, our firm provides ongoing business counsel to support the ongoing needs of our clients. From contract drafting and modification, real estate purchases and investments, employee handbooks and disputes, through litigation, our firm is prepared to handle all of your businesses legal needs. We collaborate with a team of experts, including lenders, accountants, tax experts and marketing professionals who can assist in helping your business succeed.
Call now at 615-649-5428 for a free consultation or contact us by e-mail to speak directly with our Tennessee business litigation attorney.