Is Your Business Built On A Strong Foundation?
From Stan’s interview for the Masters of the Courtroom series on ReelLawyers.com.
If you are starting a business, the decisions you make during the formation process will have a lasting impact. A mistake or oversight could prove costly, leaving you exposed to lawsuits, liability and loss. By making the right decisions, however, you can avoid costly pitfalls while laying a foundation for a profitable future.
At Padgett Law, P.A., in Tampa, we can provide you with guidance and insight based on more than 35 years of business law experience. Business attorney Stanley T. Padgett will work with you personally to help you make the right decisions today and at every stage of the life of your business.
LLCs And Other Business Entities
There are several different ways to organize your business. In today’s business environment, most business owners find they are best served by organizing as a limited liability company (LLC). One of the key advantages of an LLC is that owners are not personally liable for the business’s obligations, including lawsuits and other liabilities. LLCs also offer flexible management structures and income tax treatment as well as strong privacy protection.
Other types of business entities include:
- General partnership: Two or more people seeking to start a business together may combine their interests by establishing a partnership. In a general partnership, co-owners are involved in the day-to-day operations of the business.
- Limited partnership: In a limited partnership, one or more owners may not be directly involved in day-to-day management and decisions. A limited partnership is less complicated than a corporation, but still requires formalities such as filing a certificate with state authorities.
- Regular corporation (C-corporation): A corporation exists as a separate entity from its individual owners. A C-corp is the default corporate entity in regard to tax status. Owners may face double taxation, as the corporation and dividends are both subject to taxation.
- S-corporation: One of the unique features of an S-corp is that taxes are not incurred on the corporate level.
- Sole proprietorship: This simple business structure is not a legal entity. In a sole proprietorship, the business owner is directly responsible for taxes and risks incurred by the business.
Choosing a business entity is a momentous decision that must be handled with care. We are here to help you make the right decision so that you can get off on the right foot.
Harness The Power Of Good Decision-Making
The decisions made during the formation process can have profound ramifications on profitability and the overall health of your business. To speak with an attorney who has steered numerous business owners in the right direction, call our law offices at 813-302-1376 or contact us online.