Selecting a Business Entity
One of the most interesting and challenging areas in business law is responding to client needs in the development of the new business. When meeting with you, we seek to understand the nature of your business and then assist you in selecting an appropriate business entity structure for your business venture, including:
- Sole Proprietorship:
This business entity is the simplest business to form but you are not provided with any protection if you experience any liability problems.
This business entity is also easy to form because no registration with a government agency is required. Unless a limited liability partnership is formed, all partners are liabile for the acts of the business.
- Limited liability Company (LLC):
LLCs is a preferred business entity today. It provides many of the protections of a corporation, but without many of the legal requirments and laws to follow in organizing and recording your business.
- S Corporation:
A S-Corp Business is provided the limited liability protection of a corporation, in that a shareholder cannot be held liable for corporate responsibilities. However, the business is not taxed as a corporation, and provides many of the benefits in taxation similar to a partnership.
- C Corporation:
A C-Corp Business entity status impact is mostly relegated to the tax realm in that there is double taxation. They are taxed at the entity level, and then again at for their dividends. Most major companies are filed under this entity status.
Once you are informed of the various types of business entities, our office will be able to establish that legal entity for you.
Many clients come to us already having established a business entity and, for those clients, we review the legal entity and the documents that established it and often assist these clients with making decisions such as whether to continue their businesses as established or to establish a new entity that will provide them with potentially a “better fit”.Contact a Maryland Business Law Attorney to Start Planning Your Business
If you have questions about starting a business, speak with us regarding which business entity will be the best fit for you and your business. Contact The Law Offices of Fredric G. Antenberg at (410) 730-4404 to schedule you FREE Consultation.