Tampa Entity Formation Lawyer
You may dream of owning your own business, but what kind? That’s right, there are several types of businesses to consider if you want to be an entrepreneur. When beginning a business, one of the first things you do is decide what form of business entity to establish. The form of business you decide on will determine the various laws you must abide by and the taxes you will pay. Each business structure has legal and tax considerations.
There are pros and cons to each type of business. Count on the team at Westchase Law to help you make the right decisions. Our Tampa entity formation lawyers can give you sound legal advice. Contact us today to get started.
Types of Business Entities
Starting a business? There are five main formations that small business can consider:
- Sole proprietorship. In a sole proprietorship, you are the sole owner. This is the simplest business entity and it’s one that happens automatically, as there is no paperwork required. You personally take on all financial responsibility and legal liability for the business.
- Partnership. There are two types of partnerships. General partnerships are similar to proprietorships in that they do not require formal registration. All founders are personally liable for legal action against the partnership. Limited partnerships are different in that founders have personal liability, while limited partners have little to no liability. This means founders can easily bring on investors without giving over control of their business. Limited partnerships must be formally registered with your state government.
- Limited liability company (LLC). LLCs are attractive because they offer freedom. They provide owners the flexibility to choose how their business is taxed. LLCs stay separate from the owner. The owners receive the business’ profits, which are listed as income on their personal tax returns.
- C corporation. C corporations are legal entities independent from their founders, so the business itself is liable for legal action, while the founders are not personally liable. What also makes C corporations attractive is that they can be passed on to heirs. However, these entities do have to abide by certain laws, such as holding board meetings and creating company bylaws. C corporation owners are taxed twice: the business is taxed as well as personal earnings from company dividends.
- S corporation. S corporations are similar to C corporations except they are not double taxed. However, S corporations are limited to 100 shareholders, so this reduces your ability to grow, but it’s simple for stockholders to sell off their shares to raise capital.
Contact Westchase Law Today
There are pros and cons to each business structure. Choosing the right option sets you up for success. You need to think about the level of risk you are comfortable with. Which option should you choose?
Westchase Law can assess your business and help you choose the right formation for your needs. Our Tampa business law attorneys can help you make the right decisions. To get started, schedule a consultation by calling our office at 813-490-5211.