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Business Planning FAQs

I’m starting a company. What structure should I choose?

The structure chosen for a business can make a big difference in the liability exposure of the owners and the income tax burdens of owning, operating, and/or selling the business. We assist clients in deciding whether to form a corporation, limited liability company (LLC), or a general or limited partnership. We also assist in the decision-making and prepare partnership agreements, shareholder agreements, and operating agreements (for LLCs) that govern the relationships among owners, as well as employment and non-competition agreements and other business contracts. A well thought out agreement among owners of a business can avoid or minimize the opportunities for future disputes.

I have a family-owned business. What special considerations apply?

Family owned businesses create special opportunities and challenges. The business is often the primary source of the family’s income and net worth. Proper planning can improve the chances that the business can continue to grow and prosper, even as the founders wind down their involvement and pass the business to the next generation (if that makes sense). The owners of a family business should also coordinate their business needs and objectives with their estate planning desires and our attorneys can assist clients in that process.

I’m selling a business. How should I structure the sale?

When and if the time comes to sell a business, we can assist clients in negotiating the agreements that govern the sales transaction. The structure of a sale (an asset sale or a sale of the ownership interests) can make a big tax difference and qualified advisors are critical from the beginning of negotiations.

I’m buying a company. What steps should I take to optimize business and tax results?

By carefully selecting the form of purchase, you can optimize business and tax results. Cohen & Caproni can help guide you through the purchase process and advise you of the most up-to-date legal and tax guidelines, as well as appropriate considerations and steps to take.