Small businesses are increasingly the backbone of the new economy. While forming a new business only requires filing some paperwork with the Ohio Secretary of State’s office, how the business is structured at the outset can have a serious impact on the growth and success of your business and can affect the business’ ability to obtain financing. For example, an LLC (“Limited Liability Company”) can offer pass-through tax treatment to owners, making it an attractive option for avoiding corporate-level taxation. Startups seeking venture capital investment, however, will need to choose a C corporation, because investors typically cannot invest in pass-through entities such as LLCs. In addition, companies desiring to incentivize employees through stock options will find C corporations a much more desirable option than LLCs. Choosing the right business structure at the outset can avoid headaches and additional legal expenses down the road.
Experts in Small Business Law
The Herron Law Firm has the experience to guide you through the formation of your business. We can advise you in choosing the right entity for your business. We will advise you in the preparation of operating agreements, close corporation agreements and other start-up documentation. If you will be seeking venture capital investment, we can incorporate terms and a capital structure that will make your business attractive to potential investors.
The Herron Law Firm can also advise you in taking appropriate steps to protect your products and services, including employee confidentiality agreements, non-disclosure agreements and non-compete agreements. With our experience in employment law, we can also advise you in preparing employee handbooks, employment agreements and in maintaining compliance with the myriad of state and federal laws and regulations governing the employer-employee relationship.