Creating a (The Correct) Legal Entity
Starting a company has been the dream of many people. Unfortunately what many people overlook is the structure of the company. A simple mistake can cost an entrepreneur a fortune in taxes. All legal entities are not created equal and to avoid a big headache, and possibly a lot of heartache, we recommend you speak with a professional before starting the business. One of the first items that need to be talked about is the type of structure of the company. Each has its distinct advantages and disadvantages. But not planning ahead is never a wise idea. We work with clients with all the legal structures available, including:
- S Corporation
- Sole Proprietorships
If you started a company and you have not chosen any legal entity, and you are the sole owner, you are a Sole Proprietorship. Conversely, if there is more than one owner of the company, it is a partnership. Both of these structures are certainly legal and fine, however, there is probably a better choice for you. Don’t make a mistake that exposes your personal assets and increases your tax burden, contact us and we will be happy to advise you based upon your unique situation.