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Importance of Transactional Business Organization

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Many times clients start a new company or start a new company within a company and they don’t fully think through the potential implications down the road, whether it’s two years down the road, five years down the road, whether it’s business successions or potential shareholder disputes or a potential to grow, and how do we raise equity down the road?

I think the client has to think critically, and they have to have some foresight into where they think their company may go in the future. Because that, at the end of the day, I think helps determine how you are going to organize your company, how you’re going to structure your company. How are you gonna help avoid liability? What are the tax implications and tax issues that you have to look at?

Too many times clients will very simply do a simple filing t the Secretary of State’s Office, which they’re entitled to do, and start their business. And there’s nothing necessarily wrong with that. The problem, however, is that they haven’t thought about how doing a simple filing without thinking through what may happen two to three years down the road could affect their business.

And again, it can become more expensive, quite frankly, for the client if they don’t think about those things and address those things at the beginning of the new business.

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