Business Entity Selection
You've come up with an amazing idea and created a business plan – what's next? Well, the next step is incorporating your business plan into a registered business entity. With so many entities to choose from, it could be seem hard to choose the right business entity for your specific personal and business objectives.
You may be selling baked products and want the least amount of personal liability – this would mean you should be looking at a limited liability company or a limited partnership. If you're in real estate and your objective is to invest in real estate – you could look into a series limited liability company. Although new, this entity type could satisfy your business and personal purposes.
Perhaps you intend to sell shares of your company in the future — that would mean you should choose a corporation, as other business entities don't offer the option of "shares." If you are looking for a smaller corporation without double taxation, an S Corporation may be your business entity!
If you're starting a professional practice – you have many options. Each state has different entity formations for professional practices such as law firms, doctors, accountants, engineers, etc. For instance, in Florida, law firms can only be formed as Professional Associations (P.A.) or Professional Limited Liability Companies (P.L., P.L.L.C.). In contrast, Massachusetts doesn't have the option for a Professional Association (P.A.). Massachusetts law firms can be formed as Professional Corporations (P.C.) or Professional Limited Liability Companies (P.L., P.L.L.C.). Further, other states have different business entity requirements for professional practices.
It is best that an Attorney reviews your business intentions and goals to be fully sure of which entity is the right choice for you and that all of the business formation requirements are satisfactorily completed.
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