Atlanta Business Entity Formation Attorney
While exciting, starting a business can also be an intimidating process, particularly if you do not know what type of legal structure to choose. Business entity formation is the first step in creating a new business, and serves as the foundation for all of your operations in the years to come. Atlanta business entity formation attorney Christine Forsythe at The Forsythe Law Firm, LLC can help you make the right choice, file all necessary legal documents, pay any required filing fees, meet publicity requirements, and more.
The most simple business structure is a sole proprietorship because it is the easiest to set up, it does not require separate tax filings, and it does not require legal documents. A sole proprietorship allows a single person to own and operate a business, who is personally liable for debts and claims/lawsuits—which is also one of the main disadvantages to a sole proprietorship.
A partnership is essentially the same business structure as a sole proprietorship, except two parties share profits, business operations, debt, and claims responsibility equally. While simple to create, a partnership offers no legal protections for either party.
Limited Liability Corporation
A Limited Liability Corporation (LLC) offers protection in the form of being a separate legal entity from the owner or owners. As such, the business owner is not liable for legal claims or business losses, such as bankruptcy. Other advantages to an LLC include avoiding corporate taxes when there are business losses, and lower taxation than corporations.
A cooperative is a more complex type of business entity created to distribute profits and earnings among members. This requires an elected board of directors, officers, and regular members. The goal of a cooperative is to benefit the members.
A corporation offers the greatest level of protection for owners, drawing a stark line in the sand when it comes to profit, taxation, and liability. Business owners looking for the most protection from their business may consider creating a corporation because of this. However, corporations are the most expensive business entity to create and maintain due to costs associated with record-keeping, operational processes, and more. A few different types of corporations include:
- C Corporations
- S Corporations
- B Corporations
- Close Corporation and
- Nonprofit corporations
If your business is being created for educational, charity, religious, literary, or scientific means, you may be able to structure it as a nonprofit. Nonprofits benefit the public, and as such are exempt from federal and state taxes.
Call an Atlanta Business Entity Formation Attorney Today
There are pros and cons to every business structure. The legal entity best suited for your needs depends on many factors, including your personal wealth, the risk level of your business, taxes, the number of potential business owners/partners, the product or service being offered by your business, and much more. To learn more about business entity formation and to get help today, call Atlanta business entity formation attorney Christine Forsythe at The Forsythe Law Firm, LLC at 404.476.2717 to schedule a consultation.