- Protect your personal assets
- Set liability limitations
- Save money on taxes
- Establish a unique credit rating
- Sell shares of stock in the company
- Set transferability rules
By taking the time to think through and create the right business entity for your situation, you will also establish a level of prestige and credibility with your customers.
Types of Business Entities
- Corporations: independent company owned by shareholders; there is no personal liability but there may be tax ramifications; regular meetings and record-keeping are mandatory
- Partnerships: two or more people who own and run a business; partners are liable for business debts from all partners but there is no double taxation
- Limited liability companies (LLC): a flexible legal entity that combines features of both corporations and partnerships
You can also establish a sole proprietorship in which one person has complete control to manage all aspects of the business.
There are advantages and disadvantages to each type of business entity. The Denver business planning lawyers at The Brown Law Firm LLC can explain the different options available so you can choose the option that makes the most sense for your particular business, potential pool of partner options, budget, timeframe and more.
Contact The Brown Law Firm LLC at (303) 339-3750 or send us a message online to bring your unique situation to the table and start discussing your best options. Our experienced team can also help you prepare the proper paperwork to get the ball rolling and get your business established.