“Why should I incorporate my business?” is a question clients have asked me either while considering incorporating their business or while growing their business. The benefits of corporate operation flow from the legal recognition of the corporation as an entity separate from its individuals shareholders, directors, and officers. To enjoy these benefits, the corporation must operate as a separate entity and operate in accordance with formal requirements. When you consider what level of incorporation your business needs, what I can tell you is that through my years of experience practicing business law, I’ve represented companies at all stages of the business cycle, from startup through maturity. I’ve assisted businesses with entity formation, initial financing, product licensing, manufacturing and distribution agreements, real estate transactions, joint ventures, debt and equity financing (bridge loans, public offerings), corporate governance, regulatory compliance, and mergers and acquisitions.
Schedule a Telephone Consultation to Discuss your Business
If you feel ready to talk with a lawyer about your business, in our first telephone consultation and meeting, we can discuss your long term goals with your business and identity which type of legal business entity will best serve those goals and ensure that your company is formed and maintained in accordance with the statues of the State of Oregon and Internal Revenue Service regulations. To get started, call my office at (541) 343-3656. Either I or my assistant will briefly collect some information from you and schedule an uninterrupted time for us to discuss your legal needs. You can also get in touch with me by filling out the ‘Contact Barry Davis’ form on the right of this page.
Why form as a Corporation? What about an LLC? What’s the difference?
A corporation is defined as a legal entity that has a separate legal personality from its owners or shareholders. Because the corporation is a separate entity, it receives legal rights and duties. Some of the legal rights that always apply for a corporation are:
- The ability for a corporation to file a lawsuit and be sued as well.
- The right to hold assets that are separate from the members’ assets.
- The right to hire people to work for them.
- The right to undergo contractual agreements with other parties.
- The right to draft and adopt by-laws that would govern the corporation’s internal affairs.
The process of establishing a corporation can include additional elements, such as:
- Allowing other members to change, withdraw, or transfer their membership without affecting the corporation’s existence.
- Continuing to exist even if any of its members withdraw their membership.
- Limited liability of the members for debts of the corporation.
There are many structures of business formations that could be the right for for your business. Another corporate formation, a Limited Liability Company (LLC), may offer particular advantages for you, such as:
- Members of the corporation are treated as partners and not required to pay corporate taxes; instead they pay taxes at a personal level.
- Less paperwork and record keeping is required per State of Oregon / Internal Revenue Service regulations.
- Members are not required to meet with other members/shareholders.
- Members may be protected from debts and liable acts of the company.
- The company can choose the form of profit distribution, providing flexibility.
Limited personal liability and the tax benefits of doing business in the Corporate or LLC form are available only when you comply with the requirements of applicable laws. In our time together, we’ll review your business goals, select the right business formation that makes sense for achieving your goals, and ensure that you are in compliance with all applicable laws, requirements, and regulations.