Point Your Startup Toward Success With Trusted Business Formation Counsel

There are numerous major decisions you need to make when starting a business. These don’t just include business decisions, but also legal ones. Making the right choices can be key in positioning your business to succeed. Having trusted local legal guidance can be invaluable. Patrick Collins, LLC, is here to help. From our office in Daphne, our business formation attorney, Patrick Collins, assists entrepreneurs throughout the Baldwin County area with launching business ventures of all sizes. You can count on him for personalized attention and ethical legal counsel. Let him direct his over 35 years of experience and deep knowledge of Alabama business law toward your unique startup goals.

What Do You Need To Do To Start A Business In Alabama?

There are many different legal steps involved in launching a new company in the state. These include:

• Pick a company name: Choose a unique name and register or reserve it if necessary.
• Choose a business entity: Select the entity type that best meets your needs and follow its specific formation requirements.
• Register your business with the state: This step is only required for certain business entity types.
• Tax setup: Obtain an employer identification number (EIN) from the Internal Revenue Service and complete other necessary tax-related registrations.
• Get the necessary permits and licenses: Which ones you will need depends on where your business is located and the industry it is in.

Doing these steps correctly can be key in ensuring your business is legally sound from the start. Our business formation lawyer can guide you through the entire process with comprehensive business startup legal services.

What Different Entity Options Are There?

There are multiple business entity types that are available to Alabama entrepreneurs, such as:

• Sole proprietorships: This is a simple business entity for companies with a single owner. No state registration is required, and the business isn’t taxed on a corporate level. However, this entity type provides no liability protection to the owner.
• Partnerships: This type is just for businesses with multiple owners. It is another simpler entity. There is no registration requirement for partnership formation, and there is no corporate taxation on partnerships. Partners typically have no liability protection, unless it is a limited partnership.
• Limited liability companies (LLCs): Such companies combine elements of corporations and simpler entities. Registration is a required step of LLC formation. Businesses that form as LLCs typically are not subject to a corporate tax, and they provide a liability shield to owners (called members).
• Corporations: In this complex entity type, a business is owned by shareholders, who typically enjoy full liability protection. Management of the company is handled by a board of directors. Corporation setup has a longer list of requirements, one of which is business registration. How the entity is treated for tax purposes depends on the corporation type. C corporations are taxed at a corporate level, while S corporations are not.

As you can see, these business structures vary in many key ways. You want one well-suited to your company’s needs.

Choosing The Right Business Entity

There are many different factors to consider when it comes to entity selection. Key questions to think about include:

• Do you need built-in liability protection?
• How do you want taxation handled for your business?
• How complex of an entity do you want?
• How do you want your business to operate?
• How many owners do you want your business to have?
• How flexible of an entity do you want?
• What are your future plans for your company?

Our business formation attorney can help you evaluate such considerations and guide you on the path to picking the right entity for your startup.

Set The Blueprint For Your Startup’s Operations With Strong Internal Bylaws

While entity type sets the general framework for a startup, the internal bylaws specify the details. These documents, which vary in name based on entity type, are crucial for multi-owner businesses. Key aspects they can cover include:

• Decision-making processes
• Roles and responsibilities
• Profit distribution
• Dispute resolution
• Ownership changes
• Meeting protocols
• Financial management

Our business formation attorney can assist in drafting bylaws that meet your needs and align with your business goals.

Asset Protection When Starting Your Business

While you want business success, it also is important to consider and plan for the possibility of failure as you start up a new company. This can help keep your personal assets protected should your business venture not pan out the way you expected. Things that can help with asset protection include: choosing an entity with a liability shield, getting proper insurance coverage and clear asset segregation. Our attorney can craft personalized asset protection strategies for you in relation to your startup.

Guiding You Through Contract Formation

New businesses frequently enter into contracts, such as purchase agreements, vendor contracts and leases. Contracts play critical roles in defining relationships and expectations. Given this, you want to make sure that your business enters into contracts that have clear terms, are enforceable and properly match your goals. Our lawyer can draft, review and negotiate contracts for you, always prioritizing protecting your business interests.

How Long Does It Take To Start A Business In Alabama?

The timeline for launching a new business varies based on entity type, number of owners, industry and more. Simpler businesses may take weeks, while more complex ones can take over a year.

Turn To Us For Your Company Formation Needs

Our business formation attorney is ready to be your trusted guide throughout the startup process. Let him help you pursue your goals for your new business. Reach out to our firm today by calling 251-445-5849 or sending an email.