“Start by doing what’s necessary;
then do what’s possib
and suddenly you are doing the impossible.”
St Francis of Assisi
Starting or buying a new company is always a very busy and exciting time. With all the decisions that have to be made on the front end, one of the most important is which type of organization is right for the direction of your company. One of the best moves you can make is to let an experienced business attorney do all the heavy lifting through the process. Here’s an overview of what your choices are:
Limited Liability Corporation (LLC)
A Limited Liability Corporation is one of the most common types of business entities available. LLC’s are considered to be “flexible forms of enterprise” because they offer a blend of the elements that make up basic partnerships and corporate structures. Different than a full corporation, an LLC gets its nomenclature because it provides limited liability for its owners.
Limited Liability Partnership (LLP)
This one’s a relatively new structure also intended to give owners legal protection from lawsuits that may come against their company. An LLP also generally gives individual partners protection for the others’ liabilities or debts that could affect the business. An LLC will offer more overall protection. Limitations as to which types of companies are eligible for each could help you decide between LLC & LLP.
S Corporations (S Corps)
Since it derives its authority from Subchapter S in Chapter 1 of the Internal Revenue Code, this corporation structure is simply called an S Corporation. Since S Corporations divide and pass along income and losses to individual shareholders who in turn report and pay their own taxes, S Corp companies do not pay federal income taxes.
C Corporations (C Corps)
A C-corporation is a separate legal entity owned by shareholders. As far as the government is concerned, C corps can be defined as any corporation that is taxed separately from its owners. If you decide a C Corporation is right for your company, you will need help in filing incorporation documents.
When a company is incorporated, the directors, officers, and stockholders are protected from liability for the debts and obligations of the company. In sole proprietorship or some other structures, owners and partners are partially or fully responsible for these obligations and vulnerable to liabilities.
Getting Help From The Start
Whether it is business formation or simply understanding and choosing structure, the legal issues can be time consuming and frustrating. The experience of one of Oklahoma City’s most trusted and experienced business law attorneys, Robert R. Robles, is available for your benefit.
Contact us anytime by calling 405-232-7980.