Founding A Business On Solid Ground
When starting a business, the most important preliminary question you need to answer is what type of business will best serve your needs? You also need to understand how the type of business you form will affect your vision for growth. One thing to consider is a contingency plan. What will happen when things do not move forward as quickly or as profitably as hoped?
At William H. Sauls, Attorney At Law, we understand both the questions and the answers. We can help you understand all of the options available and have earnest conversations about how one type of business formation may have benefits that better suit your goals.
Business Formation Types To Consider
While there are quite a few business types, the six main foundation types are:
- General partnership: If you want to partner with another person to share profits and liabilities and run a for-profit business, this may be the type of business to form.
- Limited partnership: If you have a willing investor who does not necessarily want to share control or split profits and liability, this may be the right choice for you.
- Sole proprietorship: If you want to start and run your own business, this may be the best option. You will need to create an operating name using “doing business as” (dba) if you do not use your own name for your business. You will keep all of the profits but be responsible for paying taxes and bills.
- Limited liability partnership (LLP): A typical formation type choice for architects, engineers, accountants, lawyers and other professionals whose job type involves certain liabilities.
- Limited liability company (LLC): This foundation type offers flexibility in how you run the business and spend the money as well as certain legal protections. The company “exists separately from its owners.”
- Corporation: Can be a regular (C corporation) or S corporation. Owned by stockholders, this type of business entity provides certain tax protections and statuses.
There are several aspects to consider when building a business from scratch, these include personal liability, management, tax and maintenance considerations. If you are starting a family business or partnership it makes sense to think about and discuss succession planning – who will run the business if you are unable or unwilling, or you want to retire? Much of business planning crosses over in the spheres of estate planning (such as creating a trust) and taxation issues. Attorney Sauls has extensive experience in all of these areas.
Which Business Type Is Right For You?
Planning to succeed means taking the time to fully understand the process. Working with a qualified business planning attorney can help ensure that you have all of the tools and information you need to make the best decisions. Call 619-239-8096 to set up a consultation and get all of your questions answered. You can also email attorney Sauls at the firm to get the process started.