Entity Formation

Forming the right business entity is critical to your business’ success. Determining your legal entity and determining its organizational structural deserves early and careful planning. The most appropriate choice of entity depends upon your preferences for personal and entity taxation, risk of liability, business management authority, obligations as to meetings, paperwork, filings, personnel, and officers and directors. We will work you and, when appropriate, other professionals, such as CPAs or estate planning professionals, in order to advise you on the concerns and consequences of each entity choice.

Sole Proprietorship

A Sole Proprietorship business entity is the most common form of business organization. It is easy to form and offers complete managerial control to the business owner. However, the owner is also personally liable for all financial obligations of the business, which means this entity structure is not always the best choice. Have more questions about sole proprietorships? Please contact IMG if you want to form a sole proprietorship.

Partnerships

A partnership involves two or more people who agree to share in the profits and losses of a business. The partnership does not bear the tax burden of profits or the benefit of losses; profits or losses are “passed through” to partners to report on their individual income tax returns. However, each partner is personally liable for the financial obligations of the business. Have more questions about partnership agreements? We can help.

Corporations

The key benefit of corporate status is the avoidance of personal liability. The primary disadvantage is the cost of entity formation, as well as, the extensive record-keeping that is required. While double taxation is sometimes mentioned as a drawback to incorporation, the S corporation (or Subchapter corporation, a popular variation of the regular C corporation) avoids this limitation by allowing income or losses to be passed through on individual tax returns, similar to a partnership. If you are thinking about forming a corporation, please contact IMG.

LLCs

Limited liability companies, often referred to as “LLCs,” have been around since 1977, but their popularity among small-business owners is a relatively recent phenomenon. LLCs have garnered popularity because they allow owners to reap the benefits of both the corporation and partnership forms of business. Profits and losses can be passed through to owners without taxation of the business itself, and owners are shielded from personal liability. Please contact IMG if you would like to learn more about the formation of an LLC.

Tax Considerations

Preferences for certain tax and management structures help clients weigh the pros and cons of one business entity against the other business entities, whether that is a C Corporation or S Corporation, Limited Liability Company or a Professional, Limited Partnership, or General Partnership. IMG can help you determine what type of business entity is the best option for you.

Knowledge and Experience

What We Do

IMG is positioned to assist business organizations in drafting various types of corporate agreements and contracts. We assist clients with: day to day contracts and operational disputes; letter of credit disputes; supply contracts and standard terms for physical sale and purchase; storage and throughput agreements; disputes under time and voyage tanker charter parties including demurrage; joint ventures; regulatory issues and sanctions; and trade finance.

Intellectual property is one of the most valuable assets owned by a business and its significant value often leads to disputes. Our lawyers have extensive experience in pursuing and defending all types of disputes and we assist our clients with the enforcement of their own rights, and in matters of infringement of the rights of others.

IMG’s joint venture experience includes domestic, cross border and international joint ventures. The firm has been involved in joint ventures throughout the United States and in non-U.S. countries. IMG’s lawyers have a thorough understanding of all U.S. laws relating to the formation and operation of a joint venture business by a U.S. company.

IMG executes a wide variety of merger, acquisition, divestiture and reorganization transactions. We approach mergers and acquisitions from a business and entrepreneurial perspective, allowing us to anticipate our clients’ needs and develop practical and cost-effective business solutions. Our team approach ensures that each deal proceeds smoothly and as expeditiously as possible.

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