Business Formation and Entity Structuring: Building Your Company on a Solid Legal Foundation

Congruence Law, P.C. Helps Entrepreneurs Choose the Right Structure from Day One

Every successful business starts with a smart foundation. Choosing the right legal entity isn’t just about paperwork — it affects your liability, taxes, control, and growth potential. Whether you’re launching a startup, forming a partnership, or restructuring an existing business, your entity choice sets the tone for everything that follows.

At Congruence Law, P.C., we help clients navigate the critical decisions of business formation and entity structuring, providing tailored guidance that aligns with your goals and risk profile.

What Are the Main Types of Business Entities?

Each structure offers distinct legal, tax, and operational implications:

• Limited Liability Company (LLC). Offers liability protection with flexible management and tax treatment.

• Corporation (C-Corp or S-Corp). Ideal for growth-oriented businesses or those seeking outside investment. Includes formal governance requirements.

• General or Limited Partnership (GP or LP). Useful for professional firms or passive investors, but exposes general partners to liability.

• Sole Proprietorship. Simple, but offers no personal liability protection.

• Nonprofit Corporation. Best for mission-driven entities seeking tax-exempt status under 501(c)(3).

We help you compare options, considering ownership structure, funding needs, regulatory exposure, and exit strategies.

What We Do at Congruence Law, P.C.

We provide end-to-end formation services, including:

• Advising on entity selection based on tax, liability, and governance considerations

• Drafting foundational documents such as Articles of Incorporation, Bylaws, or Operating Agreements

• Filing formation paperwork with state and federal agencies

• Creating equity structures (single-member, multi-member, shares, units)

• Registering for EINs and assisting with business licensing

• Preparing founder agreements and IP assignment documents

• Drafting buy-sell agreements or partnership exit clauses

We also advise growing businesses on conversions and restructuring as needs evolve.

Pitfalls to Avoid

• Choosing an entity without considering personal liability or investor needs

• Failing to adopt a written operating or shareholder agreement

• Commingling personal and business finances, risking “piercing the veil”

• Missing state registration or foreign qualification requirements

• Skipping formalities for corporations (board meetings, minutes, resolutions)

Formation isn’t just a box to check — it’s a strategic move that protects you and sets you up for success.

Why Choose Congruence Law, P.C.

We go beyond templates and one-size-fits-all filings. Our team provides practical, customized legal guidance for founders, freelancers, professionals, and growth-stage companies. Whether you’re starting small or scaling fast, we help you build on a solid legal foundation. Contact us:

business@congruencelaw.com202-630-8141

Let us help you launch with confidence — and build something that lasts.