A business formation is one of the first steps to take when starting a business and should involve the expertise of an attorney to be sure everything moves ahead smoothly. There are different types and ways to structure a business and some of these include:
Limited Liability Company (LLC)
Limited Liability Partnership (LLP)
Sub-chapter S Corporation
Each of these options will have unique characteristics, requirements, and benefits or liabilities, and your attorney can explain the advantages of each while taking into consideration your own personal situation.
For example: In a limited liability company, or LLC, a business entity is created under state law that combines options of both a corporation and a partnership and many businesses prefer this type of formation. Like a corporation, the owners of an LLC are generally not personally liable for company debts.
Along with the formation of a business, there will be legal documents and registrations that should be filed and the services of an attorney will help ensure they are done properly and in a timely manner.
The way in which your business is formed will determine the personal liability of the founders, how taxes are paid, and other important details. It will also place certain requirements and restrictions on the business itself so it will be imperative that you understand the different options and have a chance to discuss any questions you have beforehand with your attorney.