Business Formation: Choosing the Right Entity Structure

Types of Business Entities

Sole Proprietorship

The simplest business structure where the business and owner are one entity. Easy to set up but offers no personal liability protection.

Partnership

Two or more people share ownership. General partnerships offer no liability protection, while limited partnerships provide protection to limited partners.

Limited Liability Company (LLC)

Combines the flexibility of a partnership with the liability protection of a corporation. Popular choice for small to medium-sized businesses.

Corporation

A separate legal entity from its owners. Offers strong liability protection but comes with more regulatory requirements and potential double taxation.

S Corporation

A special type of corporation that avoids double taxation while maintaining liability protection. Has specific eligibility requirements.

Factors to Consider

• Liability Protection: How important is protecting your personal assets?
• Tax Implications: Different structures have different tax treatments
• Funding Needs: Some structures are better for raising capital
• Management Structure: How do you want to run the business?
• Growth Plans: Consider your long-term business goals

Our Business Formation Services

We help entrepreneurs and established businesses choose the right entity structure and handle all aspects of formation, including:

• Entity selection consultation
• Filing articles of organization/incorporation
• Drafting operating agreements or bylaws
• Obtaining EIN and necessary licenses
• Ongoing compliance assistance