One of the most important decisions entrepreneurs and business people make is determining what legal structure suits their needs best. This is a critical decision which can have far-reaching consequences ranging from the amount of taxes one pays, to limitations of personal liability, to changes in ownership interests and control of the business. Many disputes and problems can be prevented by making the correct decisions in the business form and structure and taking preventive action against potential problems in the future.
For instance, if one chooses to do business as a general partnership (which we would not advise) one would be taxed at one’s personal tax rate, but would have no limitations of liability even for actions committed by one’s partners. If one chooses a limited liability company as one’s business structure, what if one were to have to finance the company beyond their earlier expectations while other members do not have the ability or desire to do so? Should one then have the same ownership? These are a couple examples of potential problems that can be avoided or predetermined by an experienced attorney with broad business experience.
Experience matters and can make a real difference in business. As an example, Mr. Preston was dealing with issues involving limited liability companies in the Russian Federation and Ukraine well before limited liability companies existed in Tennessee. The Tennessee Legislature created the limited liability company by legislation in 1997. Mr. Preston has been able to better assist his clients in Tennessee as a result of his experiences in Russia and Ukraine involving limited liability companies. This is a limited example of the rewards that experience affords us.