This first step in getting your business off the ground is deciding which business structure best fits your business, financial, and, yes, estate planning needs. LEO NEVILLE is a business lawyer who will help you select the option that is best for you.
There are several advantages associated with incorporating your business. Whether you elect to file as a C or as an S corporation, one of the primary benefits of incorporating your business is the liability protection afforded your personal assets. Incorporating as a C-corporation creates two levels of taxation where income is taxed at the corporation level, and then any distributions made by the corporation to the shareholders are taxed at the personal level as well.
A Limited Liability Company (LLC) is a hybrid between a corporation and a partnership. The owners of an LLC are called “members”. An LLC may be owned by a single-member or multiple-members. The LLC provides its members with the same protection of personal assets against the debts or obligations of the LLC as a corporation does for its shareholders. However, unlike a corporation, the LLC also allows for pass-through taxation to the members like a partnership. The LLC can also provide for centralized management by the members themselves or by hired managers. For these reasons, many business startups choose to organize as an LLC rather than as a corporation.
Currently, the “General Partnership” is the least utilized method of business formation because of the liability of partners for the debts of another partner. The partnership allows for pass-through taxation and shared liability and management among the partners.
“Limited Liability Partnership” (LLP) allows for pass-through taxation with the general partner(s) bearing liability and controlling management decisions.
“Family Limited Partnership” permits transfers of limited partnership interests and assets to heirs and beneficiaries.
Once the appropriate business structure for your business is determined with the help and guidance of your professional tax adviser, LEO NEVILLE is a business lawyer who will draft the necessary legal documents and ensure that the appropriate business structure is in place.
Once you have decided on the structure of your business, there are several important steps that follow. LEARN MORE