Michigan is full of entrepreneurs with dreams to launch their own businesses. But without a legal background, bad decisions can turn into costly mistakes. At Hubbell DuVall, we have the expertise you need to get your startup off the ground. We’ll make sure you’re making the right choices when it comes to the formation and structure of your small business.
Entity Selection
Choosing the best type of federally taxable entity for your Startup is crucial to its success. We’ll help you weigh the pros and cons in choosing between Limited Liability Company (LLC,) C Corporation, or S Corporation status. We know how important it is to have the right legal structure for your company. Your choice of entity will affect the rate of taxes that you’ll pay, and will matter to your investors. Every Startup situation is unique. We’ll assess the many factors involved in your business, and steer you in the right direction based on best practices in your industry.
Tax Determination
With the right planning, your Startup can reduce the effect of taxes on your business activities and transactions. Entity selection is not the only tax issue to consider. We have years of experience guiding Startups and small businesses through this complex process. We’ll provide advice on stock options, compensation plans, and other tax topics related to your industry. Without this expertise, many Startup owners make choices that lead to taxes that are higher than they need to be.
Pass-Through Business
Pass-through businesses are the most common type of business entity in the U.S. This includes sole-proprietorships, partnerships, real estate investors, and others. If your Startup is structured as an LLC, then your profits and losses aren’t taxed at the entity level. Instead, they “pass through” to the owners. We can help you determine if your Startup qualifies for the 20% tax-deduction for pass-through businesses. If you don’t meet the criteria, we can advise you on the correct steps to take to change that.
Licensing
Your business may require licenses on the federal, state, and local levels. We’ll help you navigate the rules and regulations that you must abide to operate legally. We have expertise in patents, copyrights, and trademarks. We will provide important advice on issues such as zoning ordinances, building codes, and leases. We will also walk you through the process of obtaining the following:
State business licenses
Occupational licenses
Licenses for selling specific products
Unemployment insurance
Business name registration
All manner of permits
Contact Us today to discuss how our experienced attorneys can provide counseling and assistance to your startup or small business.
