Whether you’re a prospective business owner just starting out, the proud owner of a business in need of legal advisement, or someone who’s ready to wind their business down, my knowledge and experience are at your disposal. Read on to learn about the service I offer.
If you’re just setting out to start your own business, one of the first things you need to determine is which type of business entity best aligns with your circumstances and long-term goals. Although there is a vast array of options to choose from, I find that the majority of my clients find their fit as either a corporation, limited liability company, or partnership. Choosing between these options involves a fair amount of research, but here’s a simplified breakdown of each to get you started:
Corporations operate on the concept of limited liability, meaning that its shareholders own the business but cannot be held legally liable for it — that is, unless they fail to meet corporate legal standards. Corporations are recognized as separate entities from their owners.
The core advantage of choosing to form a partnership is that these entities are not required to pay income tax. Rather, that money passes through to the business’s partners. However, this entity type can be very risky for startups because all general partners are held personally liable for the company’s debts.
Limited Liability Companies (LLCs)
Limited liability companies contain a mix of qualities found in corporations and partnerships. Like corporations, the LLC entity type protects its owners from being held personally liable for the business’s failures. And, like partnerships, LLCs offer flow-through taxation. Still, LLCs have their disadvantages, so it's best to consult with a knowledgeable attorney before proceeding with your business formation.