Massachusetts Business law
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Starting a business
Starting a business requires careful planning and foresight. You should consult an experienced attorney when forming your business as there are numerous factors that you will need to consider when selecting the type of entity that is most appropriate for you. These include, for example, tax consequences, liability issues, securities law issues, issues involving the structuring of participation rights of each owner, etc.
The principal forms of business organizations in Massachusetts are (i) sole proprietorships, (ii) general partnerships, (iii) limited partnerships, (iv) corporations, (v) limited liability companies and Massachusetts business trusts.
Understanding the advantages and disadvantages of the various types of business entities is important. For example, C corporations are "double taxed." In other words, in addition to paying taxes at the corporate level, if dividends are paid out of corporate profits, the recipient will also pay a personal income tax on the distribution. On the other hand, S corporations and LLCs may benefit from "pass-through taxation." Pass-through taxation allows income to pass through to shareholders and members - thereby avoiding taxation at the corporate or company level.
Operating Your Business
Once you have selected a type of entity and your business is up and running, we will continue to work with you by serving as your legal resource on matters that may arise in the future. These may include contractual and regulatory issues. As your counsel, we will be best placed to answer questions dealing with your businesses shareholder agreements, corporate by- laws, L.L.C. operating agreements, partnership contracts, etc.
Financing, buying or selling a business.
Financing, buying or selling a business is a complicated process. Inaccuracies in the valuation of the assets of the target business may leave you vulnerable to one-sided deal-making. Possible violations of intellectual property rights through the purchase or sale of a business may expose your company to costly litigation. Unfamiliarity with the nuances of relevant securities laws may provoke civil and even criminal liability.