Business formation refers to the creation of a business as a separate legal entity from the individual owners of the business. Business entities such as limited liability companies and corporations are created pursuant to Colorado statutes. A primary reason to form such an entity is to provide for the business owners a liability “shield” against creditors of the business. The importance of getting things right from the beginning cannot be overstated—proper formation and business practices will maintain this liability shield and avoid many headaches that may otherwise occur in the business’ future. The attorneys at Herms & Herrera have assisted many individuals in this process. Our services include the following:
- Advice regarding the pros and cons of setting up a separate entity;
- Advice regarding which entity is appropriate;
- Assistance and best practices in maintaining legal separation between the business and the owners;
- Creation of founding documents such as operating agreements, bylaws, etc.;
- Creation of documents memorializing actions by the business, especially when required by third parties with whom the business has a relationship.
If you desire to set up a new company or need assistance with your existing company, do not hesitate to call Herms & Herrera.