Business Formation

Atlanta Business Formation Lawyers

Helping Atlantans Form Their Own Businesses

For many people, becoming a business owner is the American dream. It allows people to be their own bosses, determine their own futures, and leave behind a mark on society that will last for generations. Successful business formation can lead to financial independence and open up opportunities not available to others. While many people may have ideas for businesses, actual business formation can be a difficult task. This is why it’s necessary to consult a business formation attorney to ensure your company grows to the best of its abilities.

What is Business Formation in Atlanta?

Business formation is the act of officially creating a business that exists as a legal entity, whether as a limited liability, corporation, or partnership. While many people often think they have taken appropriate steps to form or incorporate their business, the legal aspects of doing so can be tricky. Having a legally established business entity provides certain protections, including:

  • Limitations on potential personal liability
  • Statutory and internal oversight and control
  • Potential tax incentives
  • Clear and decisive decision-making authority

Forming a business entity in Georgia will determine a number of things about your company, including how it operates, how your company grows, and management and decision-making authority.

What Types of Businesses Can I Form in Atlanta?

Georgia corporations have a variety of business structures. What type of business you choose to form will depend on a variety of factors, including how many people will be involved, the kind of financial investments you are willing to make, and how large you plan to grow your business. Some of the kinds of businesses you can form in Georgia are:

* Limited Liability Companies (LLCs)

A limited liability company is one of the most common types of businesses. An LLC can protect you from lawsuits and other legal matters. If someone wants to sue you for anything related to your business, the LLC will be held liable in court. This protects you from personal liability. This means your personal assets will be protected. A limited liability company also gives you potential tax advantages. One such advantage is the “pass-through” process. This means profits will pass on to your personal tax return rather than the company’s. LLCs are ideal for smaller businesses just starting out.

* Limited Liability Partnerships

Limited liability partnerships are similar to LLCs in that they provide certain legal protections and advantages. LLPs are ideal if you plan on forming your company with other individuals. An LLP gives protection to each controlling member of the business from the actions of the other members. This means that if one of your partners engages in negligent conduct that incurs debts or obligations, you are protected from personal liability and cannot be held personally responsible. Unlike LLCs, LLPs are for specific types of partnership agreements, such as partners in a law firm or accounting practice.

*Corporations

Corporations are completely separate legal entities from their owners. A corporation is an ideal company structure for larger business enterprises that will employ multiple people and be engaged in larger-scale commerce. It is also one of the best choices if you hope to one day take your company public and/or hope to sell your business to a larger corporation for a large sum of money. Corporations provide the highest level of legal protection for the principals involved. While corporations are taxed as single entities, they are also eligible for corporate tax breaks and advantages offered as incentives to businesses. Under the umbrella of corporations, there are different types of corporate structures, such as S corporations, C corporations, and more. A skilled attorney will be able to help you choose the right type of corporation for your business.

*Sole Proprietorships

A sole proprietorship is a business model for individuals who plan on operating a very small company with themselves as the sole proprietor. This is the simplest business model and is the easiest to prepare taxes for, as the business’ income will be listed on your personal taxes. In a sole proprietorship, there is no separation between the proprietor and the business, meaning they can be held personally liable in court for issues related to the company and/or its services and products. It may be the best choice if you only plan on operating a small business or if you are just starting out and want to take the growth of your business slowly.

*Partnerships

A partnership agreement is another basic business model similar to a sole proprietorship, except there are multiple owners instead of just one. They will agree on how to share profits losses, and manage the company. Like with a sole proprietorship, there is no separation between the individuals and the company, meaning they may be held personally liable in court for issues related to the company and/or its services and products. This is the simplest business model if you have one or a few other people with whom you want to run a small business but you are not ready to take the step of forming a limited partnership or limited liability company.

What Should I Do if I Want to Form a Business in Georgia?

Legally forming a business in Georgia can be a rewarding process that allows you to move from a small, private, home-based business to operating your own company. The process can be difficult and must follow Georgia law. Additionally, forming a business that will have multiple employees means it must abide by Georgia employment law and may involve factors such as operating agreements, employment contracts, and more. This is why it’s important to consult experienced Atlanta business formation attorneys. An experienced attorney will know about the business formation process, the best business structure to choose for your company, the particulars of Georgia business law, and more.

If you or your business are considering forming a business in Atlanta, contact the business formation lawyers at Oliver Hughes LLC. We’re located at 700 Churchill Ct, Ste. 120, Woodstock, GA 30188, four miles East of the Dixie Speedway and eight miles North of Adventure Air Sports Kennesaw. Our attorneys are knowledgeable and experienced in all aspects of Georgia business law and can help you determine the best business structure to help your business succeed. We can help you identify which structure will give you the most favorable tax treatment, best allow you to conduct business, and set you down the road to success. Your business venture deserves to succeed, and our firm can provide the best business attorney for you and your Georgia business. If you’re considering starting a business in Georgia, don’t hesitate to call a business formation lawyer at Oliver Hughes LLC at 470-863-3824 for a consultation. Your success is our success.