There are several entities to choose from when starting a new business. The most popular business entities include Corporations, Limited Liability Companies (LLC), and General Partnerships. Clients typically ask, “what’s the best legal entity for my business?” In order to answer this question, many facts and issues must be considered because each business situation is different. For instance, some business owners are service oriented and others manufacture products and carry inventory. Some business owners are focused on fundraising and may need to have different classes of stock. The primary focus is maximizing profits, tax reduction and protecting personal assets from liability. If a business owner wants to protect their personal assets, establishing a corporation or LLC is always the best option compared to sole proprietorships and partnerships.
Considerations For Entity Selection (downloadable pdf)
One way to determine the best legal entity for your new business is to look at the major characteristics of each entity and determine which type matches your business needs. Click link to view a PDF of our Considerations For Entity Selection chart.)