Hopefully you were inspired by our post last week, which encouraged you to start your own business! You’ve probably been hard at work all week, perfecting your idea so that when you reached out to your small business attorney he was able to help you write your amazing business plan! The very plan that inspired every bank to give you that small business loan you needed to get your idea into action. Now that you have a business plan and funding, you need to decide which type of legal structure is best for your business.
If you haven’t reached out to an experienced small business or start up attorney, now is the time. Making the decision about whether to form an LLC, S-Corp, or C-Corp is a very important one involving monetary commitments, tax deductions, and potential personal liability. The first issue you will have to address is whether you want your company to pay taxes on profits before they are distributed to owners or you want the profits to flow straight through to the owners’ individual tax returns. This is an important decision that an experienced small business attorney can help you answer, based on what is best for your business.
While making the decision about whether to form an LLC, S-Corp, or C-Corp isn’t an easy one, with the help of a knowledgeable start up attorney it doesn’t have to be a hard one. And most importantly, by understanding the pros and cons of each legal structure (including the tax consequences of your decision), you will comfortable knowing that your small business and your hard-earned money is protected.
For more information about the LLC’s, S-Corps, and C-Corps, click here. Or you can send an instant message to the knowledgeable small business lawyers at Foresight Legal Group here. Foresight Legal Group — we make the law affordable.