The following provides a basic overview of the major non-tax considerations that clients need to address when determining the proper business entity to conduct their operations.
This is one of the most important considerations in determining the proper entity for business operations. Individual investors in business do not want to put their personal wealth at risk due to business operations.
If a client has an eye towards the future in perhaps going public or raising capital these needs have to be considered when determining the proper legal vehicle for operations.
If the client is going to need venture capital or funding from various parties, multiple classes of ownership may need to be employed to obtain the best result.
Certain interests are easier to dispose of than others and the client may desire restrictions on transferability for business, competitive and practical reasons.
Clients often times want to control the corporation and to provide for the disposition of shares or interests in the company in the event of an owner’s death, disability, retirement or separation of service.
The type of business whether it be a regular business, internet business, real estate activity or ultra-hazardous venture must be considered.
Certain states are preferred in certain cases, such as Delaware, for their established body of case law or for tax reaons. Clients need to consider how operating in multiple states need to be handled and which state should be chosen for the state of incorporation.
This is just an overview and not nearly an all inclusive list as to the non-tax consideration involved in determining the proper legal entity for a business or investment venture.
Remember, the “devil is always in the details,” as there are many technical steps and procedures that need to be taken depending on which entity is ultimately chosen. This gives you an idea as to why most astute business persons retain an experienced tax lawyer to assist them. This is not a task that should be undertaken without an experienced tax attorney who regularly deals with these details, complexities and is familiar with the technical areas of corporate and tax law.
Renice Cox, posted January 19, 2011 “Steve Fromm is a superb lawyer and I highly recommend him! After a terrible experience with a previous lawyer concerning an estate administration, I entered his office feeling very deflated, confused and discouraged. However, I left his office feeling enthusiastic and eager to get down to business. My situation was very unique, I needed his expertise for an array of things and Steve was able to address all of my needs. With a limited timeframe and an extreme amount of obstacles to overcome he worked meticulously, diligently and accomplished extraordinary results. His professionalism is incomparable and I am forever grateful.”
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Hiring Steven was quite possibly the best decision of my life! Steven took the time to hear every single one of my concerns and address them in an extremely clear, concise and thorough manner. He guided me through the notoriously complicated and stressful process of probate with the utmost of compassion and dedication. Thank you Steven!
I highly recommend Steven J. Fromm for all your estate and tax planning needs. He has the most complete and thorough knowledge of current as well as pending federal, state, and local tax codes of any professional that I have ever been involved with. His ability to totally sort out your current financial condition and relate it to a plan to minimize your tax liability and allow you to sleep at night is without equal. He is professional, timely, creative, and an advocate for your needs, whether its personal or business. You can be assured that you will be well taken care of, with cutting edge/ sound financial and tax advice by Steven J. Fromm.
I have always found Steve to be very responsive, accurate and creative in legal matters presented to him. He demonstrates a good business sense. We have collaborated on several highly technical issues over the years. I look forward to our continuing relationship.
Steven has been instrumental in helping my partner and I to create a secure and satisfying estate plan, which meets or exceeds all of our wishes and contains contingencies for everything from medical issues to wealth management and living wills. In this process, Steven has also become a friend. If you need Estate Planning, Tax Advice, a Will or a trust, etc., we highly recommend Steven Fromm, Esquire. He will listen and be sensitive to your unique situation.
Steve is an excellent attorney who has provided help for my family personally for business, tax, and other services for many years. He is extremely knowledgeable and thorough, and is extremely good at explaining legal concepts to me in clear terms understandable to a non-attorney. It is difficult to pick only three attributes above, since Steve’s work meets most if not all of the attributes above.
Steve is an excellent corporate attorney who has a deep understanding of corporate law, taxes and estate planning. He’s been extremely helpful to me in keeping my many companies and business ventures organized, focused and squeaky clean. He’s very strong in estate planning and wealth preservation as well. Finally, his follow through is air tight and utterly dependable.
Steven is a trusted adviser. We depend on him for so many things. He is patient, listens to our needs and makes excellent suggestions. He is extremely talented. We value his advice and have recommended him unhesitatingly to friends and family.
Steve Fromm is a superb lawyer and I highly recommend him! After a terrible experience with a previous lawyer concerning an estate administration, I entered his office feeling very deflated, confused and discouraged. However, I left his office feeling enthusiastic and eager to get down to business. My situation was very unique, I needed his expertise for an array of things and Steve was able to address all of my needs. With a limited timeframe and an extreme amount of obstacles to overcome he worked meticulously, diligently and accomplished extraordinary results. His professionalism is incomparable and I am forever grateful.