Business Entity Formation

Selecting a Business Entity

boardroomFrom a single-individual running a small or part-time business out of their home to the largest businesses headquartered in Georgia, the state laws of Georgia give certain protections to business entities.  Georgia allows for certain types of businesses to be created as recognized entities that provide benefits and protections to their founders, owners and investors.

Georgia recognizes a number of business types, each of which have their own characteristics and benefits.  These business entities include Sole Proprietorships, Limited Liability Companies, Corporations, General Partnerships, and Limited Partnerships.  Each entity varies by (1) how and by whom the entity is controlled, (2) who is liable for business debts and other liabilities, (3) how the entity is taxed and (4) how the entity is created and administered.  Other considerations for the type of business you select include how it will be financed initially and who, if anyone, will share in the profits.

Before beginning any new business or starting a new business venture jointly with another person or entity, contact Alford & Burkhart to discuss  your plans, creating a strategy and for assistance in creating the entity best designed for your needs.

Initial Capitalization Strategies

An essential aspect of starting a business is funding the initial startup costs.  How will your business pay salaries, rent or buy property and equipment, and fund all the other costs of starting the business?  Some business owners decide to pay out of pocket while others rely on others.  Will your business have investors?  Will you seek a private loan or a loan from a bank?

Alford & Burkhart can help business owners create a strategy for building the funds needed to successfully start a business.  Where loans and investors are involved, careful legal guidance is needed to protect the interests of the owner(s) and business, as well as comply with state and federal laws.  Additionally, Alford & Burkhart can assist businesses in putting together materials (example: private placement memorandums) to attract investors while limiting the risks involved in soliciting investors and selling securities.

Adequately capitalizing your business from the beginning is a significant factor in the likelihood of the long-term success.  Consulting with the attorneys at Alford & Burkhart can help ensure that the foundation for success is created.