Business entity selection is one of the most important aspects of forming a new company or adding to your constellation of corporate entities. Every business is different. Your choice of business entity should be informed by your goals, and it should directly reflect your needs with regard to ownership, liability and tax considerations.
Multiple aspects of your business should be considered by an experienced attorney in determining what type of entity should frame your company. Typically, the two main dimensions are tax and liability.
Some entrepreneurs discover that an entity choice was erroneous — usually once it’s too late. Hastily made decisions can lead to serious problems, as can cheap, cookie-cutter paperwork. Shooting yourself in the foot can be painful.
Start Your Business Entity Selection With The End In Mind
At Allen Barron, Inc. based in the San Diego, California, area, we advise businesses that are eager to grow and thrive. We are strategic and far-sighted, harnessing decades of relevant, real-world experience. We are in the business of helping companies succeed.
When it concerns business entity selection our experienced business and corporate attorneys counsel our clients to start with the end in mind. If you are planning a new venture, you should be asking yourself questions like:
- What is my exit strategy or succession plan? Do I want to keep this business? For how long?
- How much do I need to know about the differences between a corporation, a limited liability company (LLC) and a partnership?
- If I have created an LLC, do I have an operating agreement? Do I need one?
- What kind of advice do I need about ownership structure? What options are available?
- How do I handle a disagreement? When do I need an attorney?
Every business is different. Don’t make the mistake of forming an entity that was developed for someone else’s business.
The Difference Between an LLC, S-Corporation and a C-Corporation: Which One is Right for You?
Business entity selection is about maximizing your ability to achieve objectives and maximize profitability. When forming a new entity, it can save you hundreds or thousands of dollars immediately and in the future to be strategic and wise. To maximize your chances of success, it is essential to consider the differences between a limited liability company (LLC), an S corporation and a C corporation.
At Allen Barron we help our clients make informed decisions about entity formation that will support their business objectives. We believe it is wise to start a business with the end in mind — with an awareness of how their new entity should support what they want years in the future. Our attorneys can assist you in asking yourself, and answering, questions like:
- What are the specific tax benefits of each type of entity?
- What issues must I consider if my entity will do business overseas? What if it is based overseas?
- What type of personal exposure (liability) will an LLC or corporation allow?
- If I remain a sole proprietor, what’s the worst thing that could happen?
- What might I gain from taking on the added responsibilities associated with incorporation?
Every business is different. Most businesses fail because of inadequate planning. Many successful young businesses are vulnerable to liability due to the protections (or lack thereof) in the entity they have selected, or due to a failure to protect the “corporate veil” they’ve established. Obtain proper advice before setting your business in motion.
Contact Us | The Consultation Is Free
Seeking a business entity selection lawyer or adviser in San Diego, Los Angeles, Orange County or elsewhere in Southern California? Allen Barron, Inc. welcomes your inquiry. Contact us or call 866-631-3470 today for a free initial consultation.