Entity Selection and Document Drafting for Business Entities

At Crosswhite Law, we understand that selecting the right business entity and drafting essential documents are foundational steps for any successful business. Our experienced business attorneys in Statesville, North Carolina, provide expert guidance to help you make informed decisions and ensure your business is legally sound from the start.

Choosing the Right Business Entity

Selecting the appropriate business entity is crucial for your business's structure, taxation, liability, and overall success. Each type of entity offers different benefits and potential drawbacks, making it essential to choose one that aligns with your business goals and needs. At Crosswhite Law, we assist you in evaluating and selecting the right entity, including:

• Limited Liability Company (LLC). An LLC provides flexibility and limited liability protection for its owners (members). It combines the benefits of a corporation with the simplicity of a partnership, making it a popular choice for small to medium-sized businesses.
• Professional Limited Liability Company (PLLC). A PLLC is designed for licensed professionals, such as doctors, lawyers, and accountants. It offers the same benefits as an LLC while complying with state regulations for professional practices.
• Limited Liability Partnership (LLP). An LLP is a partnership structure where each partner has limited liability protection. This entity is suitable for businesses with multiple partners who want to protect their personal assets from business liabilities.
• Corporation (C-Corp and S-Corp). Corporations provide robust liability protection and can be beneficial for businesses planning to raise capital through the sale of stock. A C-Corp is subject to double taxation, while an S-Corp allows profits and losses to pass through to the shareholders' personal tax returns, avoiding double taxation.
• Limited Partnership (LP) and Family Limited Partnership (FLP). An LP consists of general and limited partners, where the general partners manage the business and assume liability, while the limited partners have limited liability and typically no management responsibilities. An FLP is similar but is often used for estate planning and asset protection within families.
• Drafting Essential Business Documents. Properly drafted business documents are essential for the legal operation and management of your business. At Crosswhite Law, we provide comprehensive document drafting services to ensure your business is structured correctly and operates smoothly.
• Articles of Incorporation/Organization. These foundational documents establish your business entity with the state. They include critical information such as the business name, purpose, structure, and the names of the owners or members.
• Bylaws and Operating Agreements. Bylaws (for corporations) and operating agreements (for LLCs and PLLCs) outline the internal rules and procedures for your business. These documents govern the management structure, decision-making processes, and the rights and responsibilities of the owners or members.
• Partnership Agreements. For partnerships, a partnership agreement is essential. It details the roles and responsibilities of each partner, profit and loss distribution, decision-making authority, and procedures for resolving disputes and dissolving the partnership.
• Shareholder Agreements. A shareholder agreement outlines the rights and responsibilities of the shareholders in a corporation. It addresses issues such as stock transfers, dividend distribution, and the process for resolving disputes among shareholders.
• Buy-Sell Agreements. A buy-sell agreement provides a plan for the transfer of ownership in the event of an owner's death, disability, or departure from the business. It ensures a smooth transition and protects the interests of the remaining owners and the business.

Why Choose Crosswhite Law?

At Crosswhite Law, our Statesville business attorneys are dedicated to helping you build a strong foundation for your business. We offer personalized, comprehensive legal services tailored to meet your unique needs. With our expertise in entity selection and document drafting, you can be confident that your business is set up for success. Trust us to guide you through the complexities of business formation and provide ongoing support as your business grows. Contact us today to schedule your consultation and take the first step towards securing your business's future.