There are few decisions you will make as a business owner more impactful than choosing the structure your organization will use. Whether you create a partnership with a collaborator or file the paperwork to start a corporation, this choice can impact everything from your control over the business to the taxes you pay.
Thankfully, you can rely on the support of skilled legal counsel when dealing with partnership and business formations. At Bradshaw Legal, our legal team can answer your questions and develop a plan that allows you to find a structure that fits your goals.
Common Types of Business Entities
Choosing the right legal structure can save business owners time, money, and stress, given that each option offers different benefits and drawbacks. The prominent options available to you include:
Partnerships
A general partnership is formed when two or more individuals agree to operate a business together. It’s easy to establish and doesn’t require formal registration, but each partner is personally liable for the debts and obligations of the business. Because of the limitations of this business structure, the actions of one partner can have a dramatic impact on the finances of the other.
Limited Liability Partnerships (LLPs)
LLPs offer the operational simplicity of a partnership with added liability protection. Partners in an LLP are typically shielded from personal responsibility for the actions or negligence of other partners. This structure is especially common among professionals in the legal or accounting field.
Limited Liability Companies (LLCs)
An LLC combines the liability protection of a corporation with the tax flexibility of a partnership. Owners, called members, are not personally liable for business debts. LLCs are a popular option, especially among start-ups due to the combination of control and limited liability.
Corporations
Corporations are more complex entities that offer strong liability protection and can issue stock. A C-Corp is taxed separately from its owners, while an S-Corp allows pass-through taxation. Corporations are ideal for businesses seeking outside investment or long-term growth.
How a Business Formation Attorney Can Help
An attorney can be instrumental in the business formation process. Their goal is helping you choose the right legal structure based on everything from your willingness to take risks to your preferences about how you pay taxes. They can draft and file the necessary documents with the state, such as articles of incorporation or organization, and create customized partnership or operating agreements to guide your company forward.
A business formation attorney can also ensure your business complies with state and federal regulations from day one, cutting down the chance of costly errors. Bradshaw Legal can help you make the right decisions for your business.
Talk to Bradshaw Legal Today
If you are creating a new business entity, having the right attorney by your side is essential. Let Bradshaw Legal advocate on your behalf every step of the way. Reach out today to get started.