Helping You Choose the Right Legal Entity for Your Business
You have an idea, you have a name, and you have the funding. The next step in starting your business is choosing the right legal entity. This is a step that should not be taken lightly. Your choice of entity will lay the legal foundation of your business and have a tremendous effect on your personal liability as well as your tax obligations.
At Stellmach Law PLLC, we will take the time to understand your business and your goals for the future. We will walk you through all of the available entity options and make sure you have the information you need to make a confident decision about your business startup.
Types of Legal Entities
There are numerous options to choose from, all with their own advantages and drawbacks, including:
- Limited liability Company (LLC): Ideal for holding real estate and other property, an LLC offers more flexibility than a corporation while still protecting the business owner from personal liability.
- Sole proprietorship: An entity where the business is owned by one individual. Sole proprietorships do not provide the liability protection of a corporation of LLC and are not separate entities for tax purposes.
- Partnership: Types of partnerships include limited partnerships, limited liability partnerships, and limited liability limited partnerships. Partnerships are created when two or more individuals operate a joint venture; it is possible to unintentionally form a partnership if your business activities are “considerable, continuous, and regular”.
- S-corporation: Created by filing articles of incorporation, an S-corporation must have no more than 100 shareholders and one class of stock among other requirements. An S-corporation is a popular choice for those looking to avoid self-employment taxes.
- C-corporation: Unlike S-corporations, the stock of C-corporations is often fully owned by one individual who acts as an officer.
Take the Next Step Today
Let us help you protect your rights, your finances, and your business. Contact us today to schedule a meeting with an experienced Twin Cities business attorney.