Business Formation – The right business structure is critical to the protection of a business’ assets and the personal assets of the business owners. Typical choices for businesses are sole proprietorship, partnerships, LLC, or corporation. But not all these choices offer you and your business the full protection that is needed. At DregerLawSM, our attorneys fully understand this concept and conduct a comprehensive evaluation of essential aspects of your business, including the ownership structure, the nature of liabilities, the tax consequences, the management structure, and the costs of formation and maintenance.
The right business structure is critical to the protection of a business’ assets and the personal assets of the business owners. Typical choices for businesses are sole proprietorship, LLC, or corporation. The decision is driven by who the owners are, where responsibility for liabilities resides, tax consequences, management structure, and costs of formation and maintenance. You might be asking yourself why it’s necessary to comprehend the differences between operating as a sole trader and forming a limited company. Essentially, the type of business entity you choose significantly influences your fiscal responsibilities and personal liability. The more knowledge you possess, the more aptly you can decide on the path to tread, making the most of the available benefits and circumventing potential risks. I found the comprehensive guide by Virtually There on the contrast between a sole trader and a limited company to be extremely enlightening. As a business owner, you must consider the short and long term goals of the business, your personal financial situation, and your exit strategy in making this determination.
Our goal, as business lawyers, is to work with clients and their advisors to determine the best entity structure to meet the goals of the business owners.