The attorneys at The Hart Law Group can help you plan for and set up your North Carolina Small business. Let us help you decide and plan how your business will be set up and the benefits and drawbacks of the different types of formal entities that should be considered in the process of starting your business. Corporate and personal tax and liability considerations are very important issues in business formation.
A short list of the corporate and business law services we offer includes:
- Business and Succession Planning
- Business Disputes & Litigation
- Business Entity Formation
- Creditors’ Rights and Collections
- Intellectual Property
- Mergers, Acquisitions and Business Dissolutions
- Taxation & Planning
- Charitable and conservation planning
- Transfers of business ownership
A corporation is an artificial legal entity, typically chartered by a state, generally formed to operate a business. Once chartered, the corporation is completely separate from its owners, has its own life, and is liable for its own debts and must pay its own taxes.
All states have a General Corporation Law or Business Corporation Law that allows you to obtain a charter to conduct a business. The actual formal mechanics of creating a corporation is known as “incorporation.” The process involves completing and filing a “Certificate of Incorporation” or “Articles of Incorporation” and paying a filing fee. Each state has its own set of laws governing the process of incorporating.
The most common forms of business organizations include: partnerships, limited partnerships, and
limited liability companies. The type of business that you operate determines issues such as the extent of personal liability that you have from the business and how the business is taxed.
The legal structure of your business is extremely important. State law enables you to create a legal entity – a separate “identity” from your own person – under which you can transact business, without the risk of exposing your assets to any personal liability that might arise out of your business affairs.
Limited Liability Corporations
In addition to the standard “corporation” two relatively new forms of entities known as a “Limited Liability Company” and “Limited Liability Partnership” offer many of the same benefits as the traditional corporation, plus some unique advantages.
Tax-exempt status qualification carries with it very specific requirements relative not only to how moneys and tax related issues are handled, but with regard to how business can be contracted with for-profit entities.