One of the biggest concerns for any business is protecting its principals as well as its assets—and keeping personal and business assets separate is paramount. Forming a legal entity is one of the best ways to create a separation of personal and business assets.
The traditional corporate entity in the U.S. is known as the “C-Corp.” The C-Corp has been around for hundreds of years in various forms. The most well-known benefit of the C-Corp, for much of its existence, has been the personal liability protection it offers its directors, officers, and shareholders.
The C-Corp is also the go-to entity for startups looking to raise venture capital since it offers passive investors an opportunity to obtain equity without working the day-to-day operations.
Early in their life cycles, startups are often strapped for cash, and you may think that you can take on the legal work yourself rather than hiring a lawyer for your start. An experienced startup attorney is a valuable asset to your business.
A C-Corp is the preferred entity for startups because it allows you to raise capital better than an LLC, has fewer restrictions than an S-Corp, provides you with tax benefits, and gives you personal liability protection.
Quality legal representation means that you can focus less on startup legal matters and more on the day-to-day running of your business. Call the Law Office of Elliott J. Brown today.