Business formation is often the first major step for entrepreneurs establishing new companies. From the moment you begin any business activity, you can potentially be exposed to the liabilities of your business. Choosing the right business entity and registering your company can help limit your exposure to liability.

Setting up your business structure correctly the first time can be critical to secure financing and provide your business with the best possible chance of success.

Padilla Law can help you set things up on a strong legal basis so that you can provide your organization with the best possible chance of success. From entity formation through exit, we can handle your corporate legal needs.

For those just starting out, for your convenience, below are quick definitions of the most common entities used:

Corporation: a legal entity separate and distinct from its owners. Its owners own shares and are called shareholders and where the shareholders may take part in the profits through dividends but have limited liability (i.e., not personally liable for the company’s debts).

Limited Liability Company: a legal entity with flexible hybrid structures that combine the characteristics of a corporation with those of a partnership or sole proprietorship. Its owners own membership interests and are called members and where the members may take part in the profits through distributions but also have limited liability.