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.
YES, YOU CAN LOSE EVERYTHING!
You may think that your wealth is safe and that you don't need protection.
But don't delude yourself and accept reality — for every 60
minutes you spend making money, spend 60 seconds thinking about how to