Starting a new business? Here's something you should know.
Posted by: Abby Meares
January 27, 2011
Topic: Business Law
Starting a new business can be an exciting time but it can also be confusing.
Even after you've picked a name, gotten funding and set up a location, there is still a lot to do to get your business on solid legal footing.
One important initial step, Haller & Colvin attorney Charles J. Heiny said, is to decide what kind of business organization you want to have.
The following are seven different types of legal business organizations that the business owner could consider:
- Sole Proprietorship - the business is unincorporated and owned by one person
- Partnership - the business has two or more owners who both contribute and both can expect to share in the business' income or losses
- Corporation - a legal entity which has been created by filing Articles of Incorporation with the state and owned by shareholders
- S Corporation - a corporation that has elected for tax purposes to pass on income, losses and tax deductions and credit to the shareholders
- Limited Liability Company (LLC) - an association that has the limited liability of a corporation but is taxed the same way as a partnership, s-corporation or as the LLC otherwise elects
- Limited Partnership - a business with at least one general partner who is responsible for all liability and debts and one limited partner whose liability is only what they have invested in the business
- Professional Corporation - a corporation of professionals who have to have a license to practice, such as lawyers, doctors, accountants and real estate brokers
Please contact Mr. Heiny for more information about your specific business plans.
The contents of this blog post are intended for general information purposes only and should not be construed as legal advice.
