Business Formation: What Form Should Your Business Take?
Choosing the legal form of your business is often an afterthought. As a founder or entrepreneur, you may direct most of your energy towards what your business does than the legal form it assumes. Your customers likely do not care whether your business is a corporation, limited liability company or partnership, and you may have a similar feeling.
Your Entity Choice Is Important
The type of company you form means more than what abbreviations you place after your businesses name. The form you choose will determine many aspects of your business, including the possibility of personal liability for business debts and obligations, the relationship among the founders or owners and investors, the regulatory reporting required including tax returns, the formality of your management structure, and other additional features of your business.
Whether you are starting a new business or have outgrown the original structure, working with an experienced attorney is essential. At James Law Firm, P.L.L.C., we are able to assist businesses with every element of business formation and organization. Our lawyer will explain the important legal differences between a corporation, an LLC and a partnership, and help you work through the process of deciding which form is optimal for your business.
We help businesses choose their legal entity form, including:
- Corporations
- Limited Liability Companies (LLC)
- Partnerships
- S-corporations
Tax Implications Of Your Entity
Because of our attorney’s tax background, accounting degree, and LL.M. in tax law, we can help you understand how your entity choice will affect your state and federal taxes. Entity choice affects franchise tax at the state level and income and employment tax at the federal level. Entity choice can even affect your family’s future income tax liability after your passing. We will advise you of which business form will work best with your finances, and assist with providing what you need to know to take advantage of the form that will best fit your business.
Contact Our Firm
Few legal decisions improve by inattention. Our firm can assist with a variety of legal needs, from choosing a business form, developing a comprehensive estate plan, or reviewing the tax implications of a business or real estate transaction. Call our Texas office in The Woodlands at 832-764-7885 or use our online form.