When it comes to business law matters, you need an accomplished attorney to protect your livelihood. Business law ranges from contract violations, incorporating businesses, and beyond. What might initially seem like a minor legal issue or conflict with another party, can quickly turn into a lawsuit that is a legitimate threat to the viability of your business. If you own a business and are wondering whether it is prudent to incorporate, you will not be able to proceed with full confidence unless you have a skilled business attorney in Clearwater at your service.
Why Incorporating a Business in Clearwater Makes Sense
If you are the sole proprietor of a business or have just founded a start-up, you’re going to want to incorporate your company. As a business owner you shouldn’t just incorporate your company for the three letters at the end of the company title or to give yourself more credibility. With a sole proprietorship, although it is convenient to not have business entity fees, you become personally reliable for all actions of the business—which can quickly become harmful and expensive.
A business law attorney in Clearwater, Dunedin, and Palm Harbor can help you protect your personal assets, avoid being taxed as both a company and individual entity, and continue the company’s existence if ownership changes. Incorporating your company increases your personal and professional financial security. Once you incorporate your company you will have more flexibility in stock options, protect shareholders from liability issues, and increase your business’ appeal to potential investors.
There are four characteristics that make a business a corporation. They become a separate legal personality with delegated management and are able to have shares with limited liability shareholders. If you’re a company in Clearwater, Dunedin, and Palm Harbor and are interested in better understanding how incorporating your company can help your business, you should consult a business law attorney.
How to Proceed After Deciding to Incorporate Your Business
Once you have made the decision to incorporate, you must choose which business form you would like to take. The type of company you have will affect the legal structure. The biggest factors to consider are taxes, investors, and liability as well as capitalization expansion and operation. There are a number of legal structures to choose from:
● Corporation – a legal entity that is separate and distinct from its owners. Corporations enjoy most of the rights and responsibilities that an individual possesses; that is, a corporation has the right to enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes.
● Partnership — a specific kind of legal relationship formed by the agreement between two or more individuals to carry on a business as co-owners. A partnership is a business with multiple owners, each of whom has invested in the business. Some partnerships include individuals who work in the business, while other partnerships may include partners who have limited participation and also limited liability for the debts and lawsuits against the business.
● LLC (Limited Liability Company) — A limited liability company (LLC) is a corporate structure whereby the members of the company cannot be held personally liable for the company’s debts or liabilities. Limited liability companies are essentially hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship. While the limited liability feature is similar to that of a corporation, the availability of flow-through taxation to the members of an LLC is a feature of partnerships.
There are many differences between the various entities, especially when it comes to taxing and ownership. The best decision would be to consult with a Business Law Attorney such as Sylvia White of Clearwater, Dunedin and Palm Harbor, Florida. Choosing the wrong form can affect your financial and liability security and have serious personal repercussions. By speaking with a knowledgeable and experienced professional, together you can make the best decision for your company.
How to Start
In order for your business to be a corporation or LLC, it has to be registered as a legal entity with the State in which the corporation does business. It does not matter what type of form you select for your business as there is going to be an abundance of paperwork and legal formalities to make your company an official entity. This will be the foundation for how your business is managed, operated, and shared, such as your bylaws. Some parts of the process are especially tedious and it’s imperative to make sure everything is done right the first time around.
To maximize the success of your company you must be sure that you are choosing the right legal form for your business. The only way to ensure this is by seeking legal guidance from Sylvia White, Business Law Attorney of Clearwater, Dunedin, and Palm Harbor areas. If you have any questions or would like to set up an appointment, call today.