Q: If I plan to issue stock in my company, should I form as a corporation or something else?
A: The issuance of "stock" implies for lawyers a "C corp." or "Subchapter S" corporation. Alternatives like an LLC entity allow sale of ownership interests that are not technically stock or shares but perform the same legal function. You should consult a business formation lawyer to consider the options — which relate more to tax consequences than the legal technicalities of corporate-entity classification.
A:
You wish to issue stock in (i.e. shares of) an enterprise.
While this may be accomplished via a corporate format, it is also possible via a limited liability company (LLC), limited partnership (LP) and, in some states, the limited liability partnership (LLP). Ultimately, your choice will depend on how many shares you with to issue, why you wish to issue shares (i.e. to raise capital, to distribute control, etc.), and how loosely or closely you wish to control the entity. A corporation is the most paper and time intensive format, with the LLC generally being the least paperwork intensive.
I hope this information was helpful. Best of luck.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
