Corporate, Limited Liability Companies & Partnerships
While starting a new business venture is very exciting, you’ll want to ensure you are making informed decisions that give you the most solid foundation possible. Should you become an LLC? A corporation? A partnership? What do these terms mean, and what are their benefits and drawbacks? Should you ask an attorney for help? Additionally, is it advantageous to form a company during the estate planning process?
The dedicated business and estate planning attorneys at LoPrete, Lyneis & Carnwath, P.C. are here to answer your questions, address your concerns, and provide you with the trusted and personalized legal guidance you need to move forward with confidence.
What Are The Types of Business Entities?
First, it’s helpful to know what else type of entity entails.
A limited liability company (LLC) is a business structure where the owner can avoid personal responsibility for any liabilities or debts the business incurs. LLC owners do not directly pay taxes on profits, and profits and losses are passed through to the members, who then report them on their individual tax returns.
Corporations are business entities that a board and investors own. There are S Corps and C Corps. S Corps use pass-through taxation, and individual shareholders pay personal income tax. C Corps will pay corporate taxes.
Partnerships have a pass-through taxation system. There can be two or more partners within a company. We encourage you to contact our office to learn more about which business formation structure will best suit your needs.
Deciding What Kind of Entity to Form
Deciding between a corporation, limited liability company, or partnership can be confusing and complicated – especially if you haven’t done it before. They all have different advantages and limitations.
Factors that weigh into the decision as to what type of entity to form include the number of owners, avoiding double taxation, the succession of the business on disability or death of a principal, and the avoidance of personal liability. An attorney can help you weigh all of these factors and prepare the appropriate documents, including buy-sell agreements, partnership agreements, operating agreements, and articles of incorporation or organization. Plus, attorneys can guide you on the day-to-day functioning of a business and assist you when it comes to filing your taxes.
Using an LLC or Partnership During the Estate Planning Process
Often, families form limited liability companies or partnerships to manage family assets and eventually pass those assets on to future generations. This provides protection from assets being included in a divorce and offers an effective means of gifting assets prior to death.
Whether you need help with creating your new business or utilizing an LLC or partnership to protect your family’s assets, it’s worth it to get in touch with an experienced attorney to help you avoid any issues.
Need help with forming your corporation, limited liability company, or partnership or managing it on a daily basis in Bloomfield Hills? Do you have legal questions? Then contact LoPrete, Lyneis & Carnwath, P.C. at (248) 594-5770 to get started.
Find out whether you should start a corporation, limited liability company, or partnership, as well as how to go about it and manage it day to day. You can do this ASAP with an attorney’s help.
