Orem Business Formation Attorneys Provide Trustworthy Counsel
Reputable LLC, corporation, partnership & 501(c)3 lawyers in Utah
Aristotle is credited with saying, “Well begun is half done,” and if you are planning to start a business in the Orem, Utah area, that bit of ancient wisdom is worth remembering. Too many problems that hamper a business, eating away at profits and slowing growth, are the product of poor planning at the formation stage. At Skabelund Wirig & Loos, we draw on decades of business law experience to advise entrepreneurs on the full range of issues that startups must face. We provide highly personal attention, offering solutions that fit your circumstances and business goals.
Choosing an entity for your new business
According to the Utah Department of Commerce’s Division of Corporations and Commercial Code, the five most commonly used business organizations in the Beehive State are:
- Sole proprietorships — This model is simply an extension of a single owner/operator who is 100 percent responsible for control of the business and is personally liable for taxes, debts and legal claims against the business. The owner receives very little protection from the law, and an owner’s ability to raise capital for the business is very limited, but a sole proprietorship is an easy and inexpensive business model to get up and running, and the business is highly transferable.
- Partnerships — This model also requires few formalities at formation, but partners have unlimited liability for the business. Communication and guidelines are very important, because each partner is an agent of the business and can bind the business to an agreement. A partner’s ownership is not freely transferable, so partners should commit to contingencies before finalizing a partnership agreement.
- Limited partnerships — This entity combines aspects of a partnership with those of a corporation. General partners bear most of the responsibility and exercise most of the control, but they are fully liable; limited partners have fewer rights but receive greater legal protections.
- Corporations — As a “legal person” independent of its owners, a corporation presents tremendous advantages. It protects owners from liability and makes it much easier to raise capital. Creating a corporation is a much more complex process and can only be done with permission of the state government.
- Limited liability companies — The LLC is fast becoming the most popular form of business in the country, because it combines the operational ease of a partnership with the liability protection of a corporation. But, like a corporation, it has more complex filing requirements.
- 501(c)3 — The United States Code provides for the tax-free operation of companies “exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes,” as well as for “amateur sports” and “the prevention of cruelty to children or animals.” These companies cannot be operated for shareholder profit or political purposes.
Choosing an entity is a major step forward, but even before this can happen, you should develop a detailed business plan. By working closely with us on your plan, you can discover areas of concern you must address before or during formation. Any carpenter knows that he must “measure twice to cut once.” This same principle applies to your business formation.
Essential advice in the early stages of your Utah business
Once you have settled on a plan and an entity, our attorneys can assist with other tasks crucial to business formation:
- Drafting ownership, partnership and shareholder agreements
- Arranging financing agreements and lines of credit
- Drafting company bylaws and employee handbooks
- Negotiating executive compensation packages
- Taxation planning
- Advising on insurance coverage
- Negotiating and reviewing commercial real estate leases
- Adopting strategies to protect intellectual property
- Acquiring business licenses and land use permits
When your company gets capable assistance on these issues at the outset, you eliminate impediments to your success and the likelihood of litigation, which can sap resources and divert attention from your day-to-day operations and long-term goals.
See our knowledgeable Orem lawyers for personal attention on business formation
How you form your business has a substantial impact on its chances for success. Rather than rush through the process, get personalized attention from a knowledgeable business attorney at Skabelund Wirig & Loos. To schedule a free consultation, call us at 801-788-4447 or contact our office online. We are conveniently located at 1149 West Center Street in Orem, just off I-15.