Why should you use an attorney when forming your entity (LLC or Corporation)
Many business owners start off their businesses by deciding to form a professional or legal entity with its local state’s Division of Corporations. Starting a business may involve setting up your business as either an LLC or a corporation. According to Orlando business law attorneys, there are some other business entity structures that could work better based on your specific situation. For example, it is important to consider whether the business owner intends to create a small business or a large corporation or whether the business owner intends to operate a for profit entity or a not-for-profit entity that could potentially result in additional tax breaks and other benefits to the business owner.
Do Business Owners Need to Consult with a Lawyer to Create an LLC or Corporation
Some new business owners decide to create their chosen business entity using online sites that are supposed to guide you through the process. While it is possible for a business owner to set up their entity online, the set up can be a complicated process for those who do not practice law. Additionally, many of the available online services, typically, will not go in-depth when assessing your current business needs and helping the business owner to make a determination as to which exact type of business entity is best, from a legal and taxation election standpoint, for that specific business owner’s situation.
What Are the Benefits of Setting Up Your Business as a Limited Liability Company or LLC
Setting up an LLC for a new business venture can be an excellent choice for many business owners states an experienced business attorney Orlando based. Some of the key takeaways of an LLC include greater flexibility on matters of management, less company oversight and greater flexibility in the set-up of the ownership structure
One of the best advantages is the limitation of personal liability on the business owner. In other words, if the business is structured properly, the business owner will likely not be personally liable if something goes wrong with the business later. Some possible cons are that the LLC cannot go public, that there are typically greater restrictions on transferring membership interest, and the business owner must keep up with ongoing paperwork and legal documents to remain in proper standing with the local state’s Division of Corporations. This can be time-consuming and challenging for anyone not working with a lawyer.
Learn What Is Involved When Creating a Corporation for Your Business
A corporation could be the better business entity option if the business owner plans to eventually take their business operations into the public sector. Another perk is that, for C Corporations, there can be an unlimited number of shareholders and the entity can issue multiple classes of stock. So, while a C Corporation may have more stringent requirements, the flexibility in offering multiple classes of shares may seem more attractive to certain business owners. Also, like an LLC, if properly structured and managed, a corporation could also offer business owners personal immunity from business liability obligations.
Some other potential drawbacks of forming a corporation include less management and business operation flexibility, greater involvement from the board of directors and the shareholders, and more cumbersome paperwork may need to be filed to remain compliant with laws that govern corporations. A significant amount of record-keeping and stringent adherence to meeting requirements are also often required. Talking with a knowledgeable team of Orlando business lawyers can help clients better understand their legal options when it comes to setting up their business entity.
Find a Competent Business Attorney in Orlando
Contact Nishad Khan P.L. by accessing https://nishadkhanlaw.com for legal assistance with setting up an LLC/Corporation or other entity.