What Corporate Structure is Best for Your Company?

What type of business entity is right for you and your business?  Today there are many choices for your consideration so you should spend some time reviewing your options so you can make the right decision for you and your company.  You need to choose the best business form that meets your needs and The Collins Firm is happy to help you analyze the choices and options available to you and your business.

Due consideration should be given for the choice of business formation and the type of business entity you should use.  In most states, there are several different types of business entities you can use for your business formation and I’ll spend a few minutes here looking at these options:

1.  Sole proprietorship – This type of business is used for VERY small businesses but does not afford any liability protection.  Most attorneys agree that this is the business form you should NOT use because of potential exposure to personal liability for events of the business.

2.  Corporation – This type of business entity is traditionally the most common business form and is very popular in large businesses especially long term established businesses.   The law regarding corporations has a long history thus giving you predictability in legal operations.  Many companies want to stay with a traditional corporation as that gives the feeling of stability and establishment that many businesses are seeking.

3.  Limited Liability Companies – This type of business is fairly new and does not have the long history of legal precedence, but the LLC law itself is modern and totally updated.  The LLC is often a good choice for small and medium sized businesses and in fact, I prefer to set up most of my clients as a Limited Liability Company because this form offers a wide variety of tax options in terms of how the company is treated.  Of course, this form does offer liability protection for individual owners.

4.  Partnership – This type of business is often used for very small partnerships involving two or more individuals.  Like a sole proprietorship, the form does not provide any liability protection so it is not a good form for most businesses.

5.  Limited Partnership and Limited Liability Partnership – This type of business generally provides the benefits of a partnership with the legal protections of a corporation.

As you can see there are many options for your consideration when it comes to corporate formation so it behooves you and any small business owner to check out the form that’s best for you and your business.

For more information, call for a free telephone consultation at 404-214-6070. You may also email us at info@mpcollins.com.

 

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