Starting a Business
One of the first steps in building a business is choosing a business entity. Different entity types have different features pertaining to liability, taxation, management and ownership.
Mr. Malady provides personalized business formation services, including formation of corporations, LLCs, partnerships and more. Call today for a free business formation assessment.
There are many ways to organize or form a business, and many different benefits to each type of entity. Among the many factors to consider, two of the primary considerations pertain to liability protection and taxes. Forming a business as an LLC or Corporation provides “limited liability” protection, which shields the owner’s personal assets from the liabilities of the company. It also protects the company from the personal debts of the owners, and from the conduct of other owners.
Certain entities handle taxes differently. A traditional Corporation is subject to double taxation, at both the corporate and personal levels. However, LLCs and S-Corps offer “pass-through taxation” and are taxed only once at the personal level. Other considerations can include how many people will own the company, management structure, the ability to take on investors. or sell the company down the road.
A final determination will depend on the business owner’s specific goals, strategies and preferences. A business formation lawyer can help assess the business issues, and develop a formation strategy to limit the risk of liability and maximize operational efficiency.
Types of Business Entities Include:
- Close Corporation
- Professional Corporation (PC)
- Limited Liability Company (LLC)
- General Partnership
- Limited Partnership
- Limited Liability Partnership (LLP)
- Sole Proprietorship
Once an entity is chosen and the proper documents are filed with the state, a business will need the proper bylaws, operating agreements or other governing documents that establish the rules and guidelines for how the business will be run. In addition, the business may need additional documents detailing the purchase or sale of company equity. In addition to a variety of transactional law services, Mr. Malady provides custom tailored business formation services, including:
- Business name assessment
- Business name reservation
- Prepare and file formation documents
- Draft corporate bylaws or operating agreements
- Draft shareholder agreements
- Obtain Agent for Process
- Obtain EIN
Some entity types provide liability protection, and some provide better tax benefits. Some entity types are better for single-owner businesses, others are better for larger company structures. While some are more appropriate for internet businesses, and some better for brick-and-mortar. A business formation attorney can help you navigate these issues and select the most appropriate business entity.
Call me today at (610) 565-5000 to schedule a free consultation.