Selecting the proper legal structure is one of the most important initial decisions that a business owner can make. Picking the wrong structure can have serious potential liability and tax consequences. An experienced Fort Lauderdale business formation attorney can assist you with choosing the best legal structure for your business and advise you on the benefits and disadvantages of each one.
Your company’s legal structure has major implications on your taxes and liabilities
The legal structure that you select for your business has a major impact on several aspects of its operation include taxes, personal liability for the owners, the amount of paperwork that is required, meeting requirements and more. An experienced attorney will tell you that there is no such thing as the perfect legal structure that works for every type of business.
Whether you are an individual business owner or one of several shareholders, you can benefit from speaking with an attorney during the planning stages of your business to determine the type of entity that is most suitable for you.
Type of business entities that an attorney can assist you with
A Fort Lauderdale business formation attorney can help you with forming any type of business entity that you may need including an S corporation, C Corporation, LLC, or professional corporation. Below is a brief overview of each type:
- S Corporation – An S Corporation offers owners the ability to separate their personal assets from their business’s debts. This type of entity requires annual meetings, and records of the meetings must be kept.
- C Corporations – these have many similarities to S Corporations with no limitations on the number of shareholders. Also, both S and C Corporations limit shareholder liability for the business’s liabilities and debts.
- LLCs (Limited Liability Companies) – LLCs do not have any limitations on the number of owners and can be taxed similarly to a sole proprietorship if there is one owner or as a partnership if there are multiple owners.
- Professional Corporations – these are a good option for professionals working in the fields of medicine, law, accounting, and other professional services, and this entity can protect the owner’s personal assets from lawsuits.
Mark Schecter has extensive experience helping business owners from all backgrounds with picking the best entity for their company. If you have any specific questions about forming a new business or the above mentioned business entities, contact Mark Schecter at Schecter Law today.