If you are starting a new company or have an unincorporated entity that has grown to the point where protection of your personal assets may be desired, the selection of the proper business entity can be critical to the future success of your business. There are 10 essential questions you need to ask as part of the decision-making process before making your selection.
For those who own and operate businesses, the “choice of entity” selection is one of the most important you will make for your company. There are several from which to choose, and each one has different legal and tax consequences. These include:
Many states also allow for certain types of professional corporations but the entities listed above can be formed in jurisdictions throughout the U.S.
The 10 questions that need to be asked in determining which of these entities best serves your company’s expected needs include:
It is vital to consult with legal counsel as well as your financial advisor when reviewing each of these questions in order to arrive at the best decision about which business entity will work for your circumstances and help ensure your company’s success.
If you are interested in learning more about legal protection strategies for your business, contact a Creative Business Lawyer®today to schedule your LIFT™ (legal, insurance, financial and tax) Start-Up Session to assist with entity selection.