First, we must congratulate you on taking the first step to realizing your dream of owning your own business. An entrepreneurial spirit has always been at the forefront of American ingenuity and growth, and here at Zdenek Law Firm, PA we consider it an honor to help you enter that world in proper fashion.
The legal entity you choose for your business can potentially affect all of its operations, from liability issues to managerial authority to a host of other considerations. In establishing a business enterprise, investors and entrepreneurs need to consider all of these ramifications in order to choose the proper form of business organization. It is our goal to provide clear and comprehensive guidance to entrepreneurs in matters related to the formation of your business, and the subsequent liability and governance issues you may encounter in the future. As we are not CPA's or Tax Attorneys, we will not advise you on any tax implications of your new business. Those questions are best addressed by a tax professional, and we routinely work side by side with your tax professional to insure compliance with your overall goals.
Below you'll find a list of the most commonly formed types of entities that we establish on behalf of our clients. While it is certainly not an exhaustive list, it will at least give you a general overview of the differences between entities. We can discuss at length the advantages and disadvantages of the respective entities when we meet for your first consultation. This generally lasts 30 minutes and is available at a discounted rate of $75 for that first half an hour.
Types of entities:
Limited Liability Companies (LLC): provides tax benefits and protects a shareholder's personal assets. Owners and employees are described as managers, members or manager/ members. Formed with Articles of Organization, Governed by an Operating Agreement.
Corporation: Owners, employees and corporate officers may have a variety of titles including President, Vice-President, Secretary, etc. Formed with Articles of Incorporation, Governed by Bylaws.
Tax Election statues for all corporations:
S-Corporation: the responsibility to pay federal income taxes is passed on to the shareholders, avoids corporate federal income tax.
C-Corporation: establishes the business as a separate entity responsible for paying applicable taxes
For information regarding forming your LLC, S-Corp, or becoming incorporated, Contact Us directly.