Business can be formed in four different fashions, the business entities can be sole proprietorship, partnership, corporation or a limited liability company. Each form has its own distinct benefits and disadvantages. In cooperation with a business lawyer in Naples you will be able to consider a host of factors that will help you decide which is best for your business, the core considerations are tax, legal requirements and your own personal liability.
Sole proprietorship: as the name implies this is a business owned by one person or perhaps a husband and wife team, it is not a corporation nor is it a LLC, limited labiality company. A sole proprietorship business has no legal requirements that have to be met; the downside of this type of business is that you, as the business owner are 100 percent liable for all business debts. In the event the business is sued and a court orders a judgment against you, it is you that will take full responsibility for paying the judgment regardless, even if the amount exceeds the net worth of the business. Before you decide whether a sole proprietorship or a limited liability company is best for the business you are planning. An attorney that practices business law in Naples can help you make the right decision, pointing out which business structure makes the best sense.
Partnership: This is a business owned by more than one person or husband and wife team. When two or more people own a business that is not a corporation or an LLC there are no requirements to establish it as a partnership, this fact is automatic. Although there are no legal requirements to fulfill it is always a good idea to have a partnership agreement to ensure that each party is aware of their responsibilities and commitments including percentage of ownership.
Corporation: A corporation can be owned by one or more than one people, the laws that dictate the requirements are state laws and they are different based on jurisdiction. In general to form a corporation there will have to be articles of incorporation and bylaws and stock. The main advantage to a corporation is that the owners do not have personal liability for the debts of the corporation.
LLC: A limited liability company is somewhat of a hybrid, combining the management aspects of a partnership with the liability benefit found in a corporation. Forming an LLC takes special care to ensure that the best tax status is obtained; you should form this form of business with the assistance of a business lawyer in Naples. Browse the site www.willisdavidow.com for more information.
