All About Creating a Business

Starting a business is exciting, but there are a number of tasks that have to be completed before you can get started. The first is business entity formation. You have the option of forming a corporation, Limited Liability Company (LLC), partnership, or sole proprietorship. The most popular of these business entities is the LLC because of its flexibility when the business is a closely-held business. If you opt for a sole proprietorship, then there is no separation between you and the obligations of the business. You are at full risk, but there may be benefits here as well, depending on your situation.

A Corporation is another popular type of business entity and is frequently called a “C Corporation.” It is an independent entity that is owned by shareholders. This means that the shareholders own it and those owners are legally liable for the debts and actions of the business.

Regardless of the entity, or structure, that you desire for your business, there is documentation to be completed. At Provident Legal Solutions, we will prepare your documents for you. Our professional document prep service ensures that each document is filled out properly so that you have no document-related hiccups with your filing.

The Purpose and Benefits of Forming an Entity

You want to form a business entity because you can protect yourself and other owners; save on taxes based on the profitability, size, and expenditures of the business; enact certain provisions for the governance of the business (such as bylaws, operating agreements, etc.); and enhance your professional image.

Through business entity formation, you are providing you and any other owners with a legally sound way of doing business. Other benefits of forming an entity, depending on the type of structure you choose, are:

• A nonresident can be the owner

• Partners in a partnership file their income tax on their individual tax returns so the business isn’t taxed separately

• A C Corporation involves a pooling of investor capital

• Shareholders in a C Corporation are not personally liable for business debts

• An S corporation’s shareholders are taxed at the shareholder level and not the corporate level so that the S Corp isn’t double taxed like a C Corp.

• Taxes are also paid personally by members of an LLC instead of paying both personal and business tax

• The liability of members in an LLC is limited to the amount they have invested

• Members of an LLC are allowed full participation in the management of the company

• It is possible for an LLC to have just one member

The above list gives you an idea of the benefits of business entity formation. There are many more advantages based on the type of entity you want to establish. If you are not sure which to opt for, we can review the advantages and disadvantages of each business entity with you so that you can make an educated decision.

We Make Forming an Entity Easy and Error-Free

It is our goal to make forming a business entity easy and error-free. There are a lot of tasks involved in the formation of a business and getting it off the ground. We want to take some of the stress off of your shoulders so you can focus on other important tasks. To learn more, call us at 904-333-3237

today.

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