Firm Overview
Practice Areas
Attorneys
Resources
Contact
 
Clark, Butler, Walsh & Hamann
 
CLARK BUTLER
WALSH & HAMANN
315 E 5th St.
Waterloo, Iowa 50703
Phone: (319) 234-5701
Fax: (319) 232-9579
Email: info@cbwh-law.com
 
Waterloo, Iowa Attorney practicing in Iowa primarily in Civil Litigation, Business Organization, Estate Planning & Probate, Family Law, Insurance Defense, Motor Vehicle Accidents, Personal Injury, Premise Liability, Product Liability, Real Estate, Workers' Compensation & Wrongful Death. Lawyers at the Clark, Butler, Walsh & Hamann are dedicated to serve their clients in Iowa, including the cities of Waterloo, Cedar Falls, Fort Dodge, Ames, Cedar Rapids, Iowa City, Davenport, Dubuque, Des Moines, Adel, Marshalltown, Pella, Decorah, Eldora, Johnston, Ankeny, Muscatine, Ottumwa, Manchester, Elkader, and Burlington , and the communities that make Polk, Webster, Story, Linn, Johnson, Scott, Dubuque, Black Hawk, Dallas, Marshall, Marion, Winneshiek, Muscatine, Wapello, Delaware, Clayton, Hardin and Des Moines counties.
 
 
I. Overview
II. Financing and the Business Plan
III. Permits, Licenses, and Other Legal Concerns
IV. Organizing Your Business
V. Hiring Employees
VI. Employee Pay and Compensation
VII Business Insurance
 


" Contact a Iowa business organization lawyer representing clients in Manchester, Iowa today to schedule your free initial consultation."
Dubuque County Courthouse Dubuque Iowa

Organizing Your Business

You should be aware of the advantages and disadvantages of different business structures in order to decide on how your business should be organized. This will have a large impact on daily operations and on which statutes and regulations you will have to follow. There are four major business organization types: the sole proprietorship, the partnership, the limited liability company, and the corporation. In choosing which type of organization you should have, the most important considerations should be taxes and liability.

Sole Proprietorships. A sole proprietorship is any business with one owner which has not been set up as a limited liability company or corporation. This is the simplest form of business organization, and begins as soon as the owner opens for business. Decisions are managed by the owner and the process of recognition is quite simple. The sole proprietorship, however, does not protect its owner's assets. Any action taken by a sole proprietor or an employee can create liability for the sole proprietor. Profits from the business count as personal income, and must be reported by the owner to the IRS. In short, the owner reaps all the benefits of owning a business, but has no protection against possible hazards.

Partnerships. There are two major forms of partnership, a general partnership and a limited partnership. In a general partnership, two or more persons are co-owners of a business. They all participate in management of the business, and all are personally liable for any obligation incurred by the business. Partners are legally bound by any business-related action taken by another partner. All income is split and reported by the general partners as personal income.
In a limited partnership, there must be at least one general partner responsible for management and at least one limited partner. The limited partner may contribute capital but is not involved substantially in managing the business. A general partner is liable personally for business obligations, but a limited partner has limited liability and can only be held responsible to the degree of their capital investment. Limited partnerships must be registered with your state's secretary of state. The filing process can be extremely complicated. While partnership is still flexible and allows a business owner to share the responsibilities of management, it raises the question of trust, since partners are liable for each other's actions. All partners must also consent if one partner wishes to sell or transfer their interest in the partnership.

Limited Liability Companies. A limited liability company (LLC) uses elements of corporations as well as partnerships in its organization. Generally, your state's secretary of state must receive filed papers to create an LLC. In most states, one person can form an LLC. The filing also requires a written agreement which details the rights and responsibilities of all LLC members. LLC owners only risk money which they have invested. An LLC's debts can legally only be paid using the LLC's assets. The owners are therefore protected against personal liability. However, LLC owners report their share of profits and losses as personal income; the LLC is not a taxable entity. An LLC can be very complex to set up.

Corporations. A corporation is legally a separate entity from its owners and managers. Corporations are legally considered persons, and can enter contracts, incur debt, and pay taxes independently. The owners are therefore protected from the corporation's creditors and only liable to lose money invested in the corporation. Creating a corporation requires several important legal procedures, which generally include:

You must file articles of incorporation with your state's secretary of state.

You must produce written bylaws to govern the corporation, including meeting rules, decision processes, and voting rights.

You must convene an initial meeting of the board of directors.

You must issue corporate ownership stock.

The corporation is therefore extremely complex and expensive to set up and manage. However, it is relatively easy to add new owners and to gain new capital, and the freedom from legal and financial liability allows the owner to experiment and take risks.

Choosing the best form of business organization is a crucial decision, and one that can be very complex. Before organizing your business, you should seek the advice of an attorney with experience in business planning.

Copyright © MMVII JAKOBIE
 
Back to Top
 
If you would like to schedule a free initial consultation contact an Iowa business organization attorney, representing clients in Manchester, Iowa  at the Clark, Butler, Walsh & Hamann. Give us a call at (319) 234-5701 or email us at info@cbwh-law.com.
 

DISCLAIMER: The information you obtain at our firm web site is not, nor is it intended to be, legal advice. It is recommended that you should consult an attorney for individual advice regarding your own situation.

 

 
© MMVII Clark, Butler, Walsh & Hamann Address: 315 E 5th St., Waterloo, Iowa 50703 Phone: (319) 234-5701 Fax: (319) 232-9579
Email: info@cbwh-law.com Home l Firm Overview l Practice Areas: Civil Litigation, Business Organization, Estate Planning & Probate, Family Law, Insurance Defense, Motor Vehicle Accidents, Personal Injury, Premise Liability, Product Liability, Real Estate, Workers' Compensation & Wrongful Death l Attorneys l Resources l Contact l The information you obtain at our firm web site is not, nor is it intended to be, legal advice. It is recommended that you should consult an attorney for individual advice regarding your own situation. Iowa Business Organization Manchester Attorney Formation Delaware County Incorporation Limited Liability Transaction Lawyer
Web Site Design By Jakobie
Home Contact Us Business OrganizationBusiness Organization Frequently Asked Questions