When you are starting a business, the type of business form that you will choose matters. Your election can impact how your business is run and your potential tax liabilities. Your choice of business entity could also determine whether you are personally liable for any debts or obligations of the business. Therefore, it is essential to review your own specific situation with an experienced attorney to make the right choice.
In general, incorporating your business can give you some personal protection from liability. For example, if you choose an LLC, the potential liability is limited to the assets of the LLC. In addition, you would also be choosing a flexible form of business arrangement that can be tailored to your own circumstances.
Choosing a C or S corporation could minimize your income tax obligations, allowing you to take advantage of a number of business deductions. An S corporation could protect you from double taxation.
If you select a partnership, you could share equally in the profits and expenses of the business. However, you could also end up liable for the debts of the partnership and bound by the actions of other partners.
Your choice of business entity is balancing the ease and flexibility of getting started with the structure that you need to operate your business. Potential investors and customers may pay close attention to your corporate architecture and whether it is robust when they are deciding whether to do business with you. Working with an attorney now is an investment in the future of your business.
Contact a San Francisco Business Law Attorney Today
The Primum Law Group partners with small businesses to help with all your legal needs. To speak with an attorney, you can reach out to us online or call us at 415.298.8042.