ral and state securities laws. This is essential because solicitations of capital investments in the form of the sale of stock in the corporation to even a small numbers of individuals may be unlawful. This conduct could result in civil, and even criminal penalties. AF must comply with the restrictions imposed by state and Federal laws if it intends to raise funds for expansion. This is a complex issue, and AF will require the assistance of a skilled attorney in most instances in order to sell stock in this corporation. Specifically, there are certain registration and disclosure requirements that an untrained individual would be unable to grasp irrespective of how carefully they might study the applicable securities laws.
According to Warren Fees, a sole proprietorship is the easiest and least costly way of starting a business. A sole proprietorship can be formed by finding a location and opening the door for business after obtaining the necessary business license and incurring minor expenses such as obtaining a fictitious business name. There are several types of partnerships. The two most common types are general and limited partnerships. A general partnership can be formed simply by an oral agreement between two or more persons. A new business may incorporate. The corporate structure is usually the most complex and more costly to organize than the other two business formations. Control depends on stock ownership. A Limited Liability Corporation has features of a partnership or proprietorship as well as the protection of personal assets of a Corporation. While AF could choose to run your business as a sole proprietorship, partnership, corporation or limited liability company (LLC), given the expansion plans envisioned, AF needs to consult with an attorney to determine the most appropriate business form. Ideally, this business form will offer protection for the personal assets of the companyÆs investors and facilitate th...