Factors to Consider Before Starting a Sole Proprietorship

Corporations, LLCs, & Partnerships

A sole proprietorship is the most common form of business structure. A sole proprietor fully owns and manages the daily operations of the business. He can sell the business at his or her sole discretion. In contrast to other business forms, a sole proprietorship is among the least cumbersome of business structures.  It has few compliance and regulatory obligations, minimal legal costs in the formation stage and very few formal maintenance obligations. Due to its low startup costs and bureaucratic simplicity, new owners of small businesses may be persuaded to start a sole proprietorship. However, there are several significant drawbacks... READ MORE

When starting a business, serious consideration should be given to forming a limited liability company (LLC). While the key advantage, as its title suggests, is the protection of owners from incurring personal liability for the debts and liabilities of the business, there are several other features that make LLCs a preferred structure for your business. LLC owners may also choose their tax treatment, are subject to less onerous compliance requirements and have increased flexibility. Limited liability. The members of the LLC are not personally liable for the debts of the business. In the event of a judgment, members can lose... READ MORE

This is the first of a three-part series discussing legal steps an entrepreneur, business owner or professional should take when starting and growing a business. Many people believe that entrepreneurs are turning this economy around. We work with entrepreneurs, business owners and professionals on a daily basis. Many of them are glass-half-full kind of people. That being said, too many bright, enterprising individuals do not fully recognize the impact a lawsuit can have on their business and their family. It is vital for people starting and growing their business to do everything they can to protect themselves and their family... READ MORE

A corporation has more formal requirements than an LLC, but can provide your company with tax benefits that an LLC cannot. Deciding to incorporate your business should be done with the guidance of an attorney, as you will need more than just a completed Articles of Incorporation form to achieve the benefits of this decision. There are two types of corporations: “C” and “S”, with identical non-tax benefits. The difference, then, lies within the taxation of these corporations. By creating a “C” corporation, your company will become a completely separate taxable entity from the shareholders, with the corporation retaining all... READ MORE