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Corporate counsel to new, emerging and established enterprises in North Carolina and Nationwide

BUSINESS ORGANIZATION & OPERATIONS

At no time in a business entity’s lifetime will the need for in depth, accurate and insightful planning be more compelling than upon initial organization. The choice of business entity, be it corporation, subchapter S corporation, general or limited partnership or limited liability company, involves legal and tax consequences which can have a significant impact upon the business and its profitability.

Prior to recommending a choice of business entity, our firm performs a thorough analysis of the contemplated business, its assets, liabilities, anticipated earnings and capital requirements. This analysis extends to the business owners, their financial contributions, their participation in the business and their individual tax postures.

 

The choice of business entity can have a significant impact upon the business and its profitability.

 
Having performed this analysis, the firm recommends both a form of organization and procedures designed to facilitate the initial financing and operation of the business. Where appropriate, the relationship of the business’ owners and executives with the business, and each other, is defined with employment and buy-sell agreements.
Our comprehensive approach to organizational legal and tax planning is designed to lay a firm foundation for the success and growth of the business enterprise.

We welcome the chance to apply our experience and expertise to your business opportunity. Contact us at 717-215-9703 or use the form on our Contact page.

Hedger & Hedger, 115 Country Club Drive, Hertford, NC 27944
717-215-9703

THE CORPORATE TRANSPARENCY ACT IS HERE!

In 2021 Congress enacted the Corporate Transparency Act (CTA) which became effective on January 1, 2024. The CTA is intended to protect national security by combatting the use of “shell” companies to commit money laundering, tax evasion, fraud, corruption, terrorism and other illegal activities.

To this end, the CTA requires that most small businesses formed by filing organizational documents with government agencies (“reporting companies”) file Beneficial Ownership Information Reports (BOIRs) with the Financial Crimes Enforcement Network (FinCEN).

Reporting companies may include business corporations, professional corporations (PCs), limited liability companies (LLCs), limited partnerships (LPs), limited liability partnerships (LLPs) and other entities formed pursuant to filings with a secretary of state or similar office. Sole proprietorships and general partnerships are among the entities exempt from compliance with the CTA.

Reporting companies formed prior to 2024 have until January 1, 2025 to file their BOIR with FinCEN. Reporting companies formed in 2024 have 90 days from their date of formation to file their BOIR. Reporting companies formed after 2024 will have 30 days from their date of formation to file their BOIR.

Noncompliance with the CTA can result in civil penalties of up to $500 per day and criminal penalties of $10,000 and/or 2 years in jail.

A company can learn on this site, without charge, whether it is a “reporting company” and subject to the filing requirements of the CTA. Simply answer the few questions below and the company’s “reporting company” status will appear.