The first step in any business venture is to choose a business entity type that best suits your needs. We can help you determine whether to form a corporation, Limited Liability Company, partnership, or other entity that will best protect your interests and potentially provide significant tax savings. If you are buying or selling a business, be sure that your agreements properly protect your interests and are enforceable.
Business Entity Types
A corporation is a complex structure of a business. A corporation has several more rights, abilities, and liabilities than a single person is able to. Doing business as a corporation can be a good choice for financial reasons, but those gains can be offset by things such as increased licensing fees and taxes.
A Limited Liability Company (LLC) is a common structure of businesses. It is set up by one or more people or entities via a written agreement. The agreement details the structure of the LLC, such as management, assignment of interests, and distribution of profits and losses. LLCs are able to work in most industries, but not banking or insurance.
A partnership is made up of at least two people who agree to contribute an asset, skill, or labor to a business. Every person (partner) shares in the profits, losses, and management responsibilities of the business and is equally accountable for debts of the partnership.
There are several other types of businesses, and there is always a best fit for your situation. Contact the attorneys at GWB to learn more about what the best option is for you.