New York Startup Lawyer Provides Advice for New Ventures
Startup companies can turn into immensely profitable businesses that provide important products and services while helping their owners achieve economic success. However, no matter how good of an idea you have, you need to get the logistics right if you want your startup to become a successful company that can stand the test of time.
Ny Litigation Firm is here to help. Our New York business lawyers can assist you in understanding the legal issues faced by startups and can help your company to get started on the right path so you can maximize the chances of success.
As soon as you are ready to begin operations, you should give us a call today to find out how a business law attorney in New York can help you.
Services for Startups
Startups have unique needs as company owners work to determine how their company should be structured and work to put policies in place that will allow for effective corporate governance as the company grows.
Those who are just beginning operations need to get help from a business lawyer in New York with the knowledge to provide the advocacy, advice, and services that a fledgling new company needs.
NY Litigation Firm can provide the help that you are looking for. Our start up lawyers offers assistance with all of the key issues affecting new companies including:
- Choosing the correct business structure
- Creating the right business entity, including going through the incorporation process or the process of forming a partnership or LLC
- Creating a partnership agreement, shareholders agreement, or operating agreement to establish processes for corporate governance.
- Obtaining a tax identification number (TIN)
- Obtaining the proper licensing and certification
- Complying with zoning laws and environmental safety regulations
- Developing agreements with investors or other individuals or entities providing financing
- Securing protections for intellectual property
- Addressing issues raised by hiring employees, including creating a company handbook, developing non-competition agreements if necessary, protecting trade secrets, complying with anti-discrimination laws, and complying with workplace safety regulations
- Protection of intellectual property, including securing patents, copyrights, and trademarks
Developing a business succession plan in case any employee departs, divorces, passes away, or becomes disabled
Depending upon the nature of your business, there may be other steps to take and other legal issues to address.
A business lawyer in New York at NY Litigation Firm will work closely with you to understand what tools your company needs to use and what processes your organization must put in place to maximize your chances of success.
Creating the Right Business Entity
One of the most important decisions that must be made by any startup is the choice of how to structure a business. Your company may have a variety of different options including operating as a:
Sole proprietorship: A sole proprietorship is a common type of business because it is so simple to form. If you open a business without choosing another type of business entity, a sole proprietorship is the default. The upside is, there’s no paperwork or other requirements to fill out. But, there are big downsides. You and the company are one-and-the-same so the company is largely dependent upon your involvement to continue operations. You pay taxes on profits and declare losses on your personal tax return, and if the company gets into debt or goes bankrupt, this is the same as a personal bankruptcy.
Partnership: A partnership allows you to pool your talents and resources with others and co-own a business. Simplicity is the benefit of a partnership, as it’s the easiest type of business to form when there are two or more owners of the company. There are also big downsides of a partnership as well. Each partner is responsible for the debts and obligations of the company, which means personal assets are at risk – just like with a sole proprietorship. Profits and losses are also declared on the individual tax returns of partners. Because there are multiple owners and there is a potential for conflict, you should have a partnership agreement – but the paperwork involved in forming a partnership is easier than the paperwork necessary to form other business entities.
S-corporation: S-corporations and C-corporations both allow you to create a separate entity for your company. Your business has its own identity, separate from you. If your business goes into debt, is sued, or goes bankrupt, your personal wealth isn’t generally at risk as long as you’ve maintained corporate formalities. An S-corp has many benefits, including more flexibility in how you are taxed. While profits and losses pass on to owners, some part of the profits can be declared as distributions, which allows you to save on FICA taxes. The downside is that it can be more complicated to incorporate than to operate as a sole proprietorship or partnership.
C-corporation: A C-corporation, like an S-corp, allows you to create a separate entity so you are protected from company debt and liability. C-corps can have more owners, and there is more flexibility in who can own shares in a C-corp, compared with S-corps. However, there is an additional downside compared with S-corps. Double taxation is possible as the company is taxed on profits (profits and losses don’t pass through to owners) and the owners are also taxed as well.
Yulia Vangorodska will provide the help that you need to determine which business structure makes the most sense in your particular situation.
We can also provide you with assistance in taking the steps necessary to form the business organization that is right for you.
This could include filing articles of incorporation, drafting partnership or shareholder agreements and more.
Getting Help from A New York City Business Startups Lawyer
If you have decided to try to build a business, you need a partner with knowledge of the law who can help you with the process and who can advocate for your interests as you start down the path of hard work that will make your company more successful than you ever dreamed.
NY Litigation Firm is ready to provide the legal support your company needs. We will be there for you as the important decisions are made, helping you to understand and protect your rights and advising you on the key legal issues you need to address. You should involve a NY business attorney as soon as possible so you can avoid problems down the line and maximize your chances of success — and you should make sure you work with an attorney who is ready to stand by your side if a problem does occur.
With our in-depth experience with startups, our history serving as general counsel, or litigation experience, and our negotiation experience, NY Litigation Firm is the firm you should trust to help your organization become a great business that can stand the test of time.
To find out more about how we can help your new startup company to succeed, give us a call today.