A corporation is not the only choice for a new business, and it is not always the right one. Before we form an entity, we look at how it will be taxed, who will manage it, how much personal liability the owners will carry, how money will come in, and what happens when an owner retires, sells out or dies. Those answers point toward a corporation, a general or limited partnership, a joint venture or a limited liability company.
The work does not stop once the papers are filed. Businesses buy and sell assets, take on partners, sign leases and hire employees. Owners sometimes disagree. We stay with our clients through each of those stages, and when a dispute cannot be settled at the table, we handle business litigation in South Carolina courts.
Business matters we handle
- Forming corporations, LLCs, partnerships and joint ventures
- Reorganizing or converting an existing entity
- Buying or selling a business
- Mergers, reorganizations and restructuring
- Buy-sell and shareholder agreements
- Operating and partnership agreements
- Contract drafting, review and negotiation
- Intellectual property and employment counseling
- Corporate compliance and recordkeeping
- Business litigation and disputes between owners
Choosing the right structure
Taxes are often the first question. A C corporation pays tax at the company level, and its owners pay again on dividends. An S corporation, a partnership or an LLC usually passes income through to the owners' personal returns. The right answer depends on how much the business earns, how the owners take money out and what they plan to do with the company later.
Management and liability matter just as much. A corporation runs through a board and officers. An LLC can be run by its members or by appointed managers. General partners can be personally responsible for partnership debts, while corporations and LLCs generally protect owners' personal assets when the business keeps its finances and records separate. If you plan to bring in investors, the capital structure you choose now will shape how easy that is.
Planning for succession before you need it
Every business with more than one owner should answer a hard question early: what happens to an owner's share if that owner dies, becomes disabled, divorces, retires or simply wants out. A buy-sell agreement or shareholder agreement answers it in writing. It sets who can buy the interest, how the price is set and how the purchase will be paid for, often with life insurance.
Without that agreement, the remaining owners can end up in business with a spouse or heir who never planned to run the company. We draft these agreements to fit the business and the owners' own estate plans.
Part of the Anderson business community
We have served Anderson since 1948, and many of our business clients are neighbors. J. Calhoun Pruitt, Jr. serves on the Board of Directors of GrandSouth Bank and is a member of the Anderson Chamber of Commerce. We know the local market, the local lenders and the courts where business cases are heard.
Whether you are starting a company, selling one or facing a lawsuit, the first step is a consultation. We will listen to where your business stands and tell you plainly what we think it needs.
