Business formation can occur under a number of circumstances. Some business formations are completed to begin a business and other business formations are used to expand an existing business.
When business formation is completed within an existing business, the new arrangement can allow the existing business to expand itself beyond the current parameters of the existing business. The expansion and new business formation not only creates an avenue of growth, but could also provide legal protections for the company through restructuring with an experienced attorney. When business formations are created in California, both state and federal laws may apply.
Recently, the financial company Capital Financial Global expanded their company by using business formation tools to create an expansion business. The company created a small syndicate that will allow the company to provide funding for smaller transactions that may not meet the parameters of the current business structure.
The new business structure will provide for hard money lending for smaller transactions that may not otherwise qualify for the company's current size limitation. The new business formation will allow the company to provide services to clients that were previously outside of the company's scope. The new business formation will expand the company's clientele portfolio and generate additional revenue.
Business formations are essential at any stage of the company's growth. The correct formation creates the blueprint for the new venture and potential success of the new business formation. An experienced attorney can help a new company or existing company create a successful blueprint for business formation that will meet the business's expectations and goals.
Source: Sacramento Bee, "Capital Financial Global Announces Formation of Small Hard Money Lending Syndicate, Expansion of One-Off Lending Capacity Share," Capital Financial Global, Inc. June 20, 2012
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