Business Planning

We advise small to medium-sized businesses in a transactional matters; from the choice of business entity, to the review and drafting of business contracts.

Many small businesses start out as either a sole proprietorship or a partnership. While these are the simplest forms of doing business, they provide little or no shield against personal liability. As this becomes a bigger issue businesses frequently change to either a corporate or limited liability company (LLC) form.

A business may also choose to be either a “C” or an “S” Corporation.  Most large companies do business as “C” corporations.  Many, but not all, small businesses do business as “S” corporations. There are many factors that determine which is the best type for a particular business.

Small businesses have often chose the limited liability company (LLC) form of doing business. Properly maintained and executed, the LLC provides the simplicity of partnership or sole proprietorship taxation with many of the liability shields of the corporate form.

The form of business that is best for you depends on your particular situation, your goals and objectives.

Estate planning for business owners is significantly different than it is for people who do not own a business. Family may work in the business may not. It is important to establish an equitable transfer arrangement.  This allows the children who work in the business to retain that business while also fairly compensating the children who do not.

More than 50% of the business owners have more than half of their wealth tied up in the business, however only 30% of the family businesses survive into the second generation. It is estimated that only 57% of owners of a family controlled business intend to transfer the business to family members. Even if there are no children involved in a business, it is wise to have ownership succession plans in place.