Should You Form a Corporation or LLC?
Corporations and Limited Liability Companies (“LLCs”) offer a layer of protection against individual liability, but which one should you choose?
LLC
Business Transactions
Business transactions include the following: an asset purchase of a business; a purchase of a percentage membership interest in an LLC or stock in a corporation both of which are purchases of assets subject to liabilities; the division of a partnership or LLC where each partner or member is allocated his or her assets and liabilities; and a merger of two business entities. Business transactions can also be the acquisition or sale of commercial real estate, sometimes subject to a tax free exchange…
Business Succession Plan
A closely held business, especially a family business, needs a succession plan. A succession plan should be part of an overall business plan, just like profit and loss projections, product and marketing plans. Questions such as: Who will take over when the owner retires? Will the business be sold? To a co-owner? To an outsider? Who are the possible buyers? When will the business be sold? All of these questions need to be addressed.
