Milwaukee Business Formation Attorneys

Experienced Business Formation Lawyers Assisting Entrepreneurs in Milwaukee, WI

Establishing a business requires careful planning and a clear understanding of the legal options that are available. Whether you are starting a small business or launching a large enterprise, the decisions made during the business formation process can significantly impact the success of your company. At Mallery s.c., our business law attorneys can provide invaluable assistance, helping to ensure that your business is set up for long-term success.

The Importance of Establishing a Business Structure

Choosing the right business structure is a critical step in the formation process. The structure you select will influence various aspects of your business, including:

• Liability protection: Different structures offer varying levels of protection against personal liability. Selecting the right structure can shield your personal assets and ensure that you will not be held responsible for business liabilities.
• Taxation: The tax obligations of your business can vary significantly depending on the structure. The right choice can optimize the amount of taxes that you and your business will be required to pay.
• Management and control: The structure of your business can determine how it will be managed and who will have control over decision-making processes.
• Fundraising: Your ability to raise capital can be affected by your business structure, as some investors prefer specific types of business entities.
• Compliance requirements: Different structures have distinct regulatory and compliance requirements that must be met to maintain good standing.

Options for Structuring a Business

When forming a business in Milwaukee, you have several options, and each has its own advantages and disadvantages. Some of the most common business structures include:

• Sole proprietorship: This is the simplest way to structure a business, providing no legal distinction between the owner and the business. A sole proprietorship is easy to form, provides complete control for the owner, and allows for simplified tax filings. However, it offers no personal liability protection, making the owner personally responsible for all business debts and obligations.
• Partnership: This structure involves two or more people who will share ownership of a business. Partnerships can be general or limited. In a general partnership, all partners will share management responsibilities and personal liability for business debts. A limited partnership may include both general and limited partners. Limited partners will have protections against liability, and they may not participate in day-to-day management. A partnership is relatively easy to establish, allows for shared decision-making and resources, and provides potential tax benefits. However, general partners will have personal liability, and unless there is an effective partnership agreement in place, conflicts may arise among partners.
• Corporation: With this type of structure, a business will be a separate legal entity owned by shareholders. It can be structured as a C corporation, which is subject to corporate income tax, or an S corporation, which allows profits and losses to pass through to shareholders' personal tax returns, avoiding double taxation. Corporations provide limited liability for shareholders and easier access to capital. However, they are more complex and expensive to form, and they are subject to more regulations.
• Limited Liability Company (LLC): This structure combines the liability protection of a corporation with the flexibility and tax benefits of a partnership. It provides personal liability protection for its owners (who are known as members), and it allows for flexible management structures and pass-through taxation. However, LLCs are more complex and costly to form than sole proprietorships or partnerships, and they may be subject to additional regulatory requirements.

Contact Our Milwaukee Business Formation Attorneys

At Mallery s.c., our skilled, experienced lawyers can provide crucial support during the business formation process. We can assess the needs of a business to determine the ideal structure, draft and file all required formation documents, help create internal agreements such as operating agreements or corporate bylaws, apply for licenses or permits, and help ensure compliance with state and federal regulations. We can also provide ongoing support, helping owners, partners, or shareholders navigate legal concerns that may arise.

Our firm is committed to helping you establish and build a successful business. To learn more about our business law services, contact us today at 414-271-2424 and schedule a consultation.