There are a multitude of legal issues to think about when it comes to starting your business. Choosing a legal structure for your business can be a daunting first step in setting up shop. Which entity is best for your business depends on many factors, and the decision can have a significant impact on both profitability and asset protection afforded to its owners.
Protect Your New Business with Preventative Legal Planning
The choices you make today will have lasting effects on the viability and profitability of your new business venture. Making a poor decision can hurt your business prospects before you’ve even made your first sale. Understanding the differences among business structures can help you make the most money, with the least hassle, while keeping your tax bill as small as possible.
Limited Liability Companies Are Most Common
A limited liability company (LLC) is the most common type of business structure and works well for most businesses with a well-defined ownership and executive structure. The LLC is a hybrid type of business structure. When an individual, family, or small group owns a business, a limited liability company will separate their personal lives from their business lives when it comes to liability issues. However, a limited liability company isn’t always the best way to go. A limited partnership can help to ensure two or more business partners are on equal footing and have equal protections in business matters. And if looking to grow and expand, a corporate structure might work best. One of the factors that can influence your choice of business structure is complexity. Sole proprietorships and general partnerships are easy to setup and manage.
Sole proprietorships, Corporations, and limited liability companies (LLC) all have their advantages and drawbacks.Obtaining legal advice on the best way to proceed with a business structure can help a great deal.
Risk Management Is Important for All Businesses
When you go into any kind of business, it’s important to address risk management issues as well as liability and other legal issues. Successful business owners are cognizant of the risks involved in owning and operating their venture and must manage these risks at every juncture. Fortunately, there are things that you can do to protect yourself in these situations. A major part of how your business manages risks comes from your business structure. Establishing the legal structure of your business is the first vital step in launching a successful business venture. Allow our attorneys to help you choose a business structure that is appropriate for your type of business, level of risk, and management style.
A Business Lawyer Can Help
The law surrounding choosing a legal structure for your business is complicated. Plus, the facts of each case are unique. By working with an attorney early on in the creation of your new business, you can build a sound foundation for your company while likely saving money down the road. For more detailed, specific information, contact Bailey Law Firm today at (832) 510-2900!