New Orleans Crypto Corporate Structure Lawyer New Orleans Crypto Corporate Structure Lawyer

New Orleans Crypto Corporate Structure Attorney

With the increasing popularity of cryptocurrencies, starting a blockchain-based business that creates opportunities for consumers to earn virtual currencies could put you on the cutting edge of the corporate world. However, starting a business in this space may prove more complicated than you may think. With its decentralized structure, crypto business law may offer uncertainty for the future, but a New Orleans crypto corporate structure lawyer can help your business succeed.

At Quantum Counsel, we know that, although the legal outlines aren’t as clear as those of traditional corporate structures, starting your crypto-based company with the right foundations can ensure that your business is able to adapt and grow with future legal implementations. Our team can help clients in Jefferson Parish and the New Orleans metro area with their corporate structures and governance as they look to future developments.

Crypto Corporate Structure

A business entity seeking to capitalize on the crypto market will often base its systems on blockchain technology, which means the structures of the corporations themselves will differ from more traditional styles. In blockchain structures, corporations will often form as:

• Limited liability company (LLC). This creates a foundational technology system and sets of protocols that are then paired with a separate business.
• Blockchain-based ecosystems. This technology is partnered with LLCs to create the internal structures for revenue streams.
• Non-registered distributed organizations. This relies on crowdsourcing to build the company’s infrastructure.

When structuring a new crypto-based company, many elements will resemble those of traditional organizations. However, there are more planning and legal considerations in how you intend to launch your company with its initial coin offerings. Whenever your company is working with blockchain technology, you should seek the advice of an experienced and knowledgeable attorney, such as those at Quantum Counsel.

Governing the Blockchain

Blockchain technology creates a functioning space in which anonymity exists, and decentralization is the standard. Therefore, there is no one governing agent—rather, it is governed and monitored by the users interacting with it. This creates a new dynamic for corporate structures that make enforcing the company’s regulations more difficult. To counter this, many companies program their own forms of governance.

One of the pitfalls to such corporate structures, however, is the constant changes by regulators trying to keep up with the evolving community. This means that laws and regulatory standards need to be planned for to ensure your corporation remains in compliance. In this area of your corporation, having legal counsel helps to keep your business running smoothly amongst the changes.

What Are the Benefits of Crypto Corporations?

Determining how to set up your crypto corporation should be based on the benefits you wish to gain from such an endeavor and the purpose of your business. Generally, an LLC will provide a streamlined organization that protects against liabilities and allows gains and losses to move directly to the owner and the owner’s personal taxes.

C corporations may be more beneficial if your company has a future in trading stocks and would like to offer stock options moving forward. These types of corporations, however, have higher tax implications, as both the company and its investors may be taxed on their income.

An S corporation, similar to a C corporation, offers the opportunity for public trade but limits shareholders to 100 and provides tax structures similar to an LLC.

While there are many challenges to setting up your crypto-based corporation, there are also advantages to these types of businesses. If, for example, you establish your company as an LLC, you may benefit from the following:

• Tax write-offs. Because crypto corporations are program-based, they are subject to hacks from the outside, just as any other computer program. While blockchain technology is difficult to hack, it is not impossible. If your company is an LLC and has the right protections in place, you may be able to write off the losses you encounter from such activities.
• Losses offset past and future capital gains. Capital gains and losses are the over margins of profit your company experiences. These can fluctuate from year to year. In the crypto realm, your C corporation may be able to use capital losses to offset the gains, impacting the company’s tax liability. These adjustments can be made to previous tax years up to three years prior.

To determine which type of corporate structure is right for your crypto company, you should speak with your attorney, who can provide you with guidance based on your company’s future goals. They will help you identify the pros and cons of each type of corporation to identify which will work for you.

How Can an Attorney Help With My Crypto Corporate Structure?

Working with an attorney in establishing your crypto corporation can ensure that you are abiding by not only current laws but also those of the future. An attorney, such as those at Quantum Counsel, can stay informed on the changing laws to ensure you establish your corporation correctly and structure it in a way that prepares for the future. With constant changes, your attorney can use their knowledge and legal experience to anticipate legal challenges.

Future legislative changes include reporting mandates that seek to protect the public from shell companies that may engage in illicit activities. Through the establishment of Beneficial Owner Information, both you and your company should be held accountable. Your attorney in New Orleans, LA will help ensure that your company not only establishes itself correctly but also meets the many deadlines and changes that the crypto space requires.

New Orleans Crypto Corporate Structure Lawyer

Starting any corporation has its challenges, but when entering the cryptocurrency space, these challenges can be compounded by changing laws, regulations, and new foundational requirements. At Quantum Counsel, we help clients form crypto-based corporations, protect their blockchain assets, and represent them in legal disputes.

If you are interested in entering the cryptocurrency market, you will have many questions. With extensive knowledge and experience in crypto law, Jarred Bradley of Quantum Counsel has the answers you need. Contact us today, and let our team help you start your corporation and plan for its future.

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