How To Choose A Business Entity

As part of the business formation process, you will choose the type of entity you want to form. Every owner's needs and situations are different so there is no single correct answer for the best entity to choose. Some of the biggest factors influencing your decision will be taxes and personal liability.

Business Taxes

Taxes are an important concern for any business, but they are handled differently depending on what type of business you run.

For example, a partnership allows you to pass company losses to your personal tax return, which is a significant benefit to the company's finances. A "C" corporation cannot pass losses to owners and may even face double taxation. However, a specific type of corporation, the Sub-Chapter S-corporation, can avoid double taxation.

Personal Liability Exposure

A major component to business law is prevention and planning. Ideally, you would not encounter legal trouble, but most businesses will face legal concerns at some point in time. While some entities may offer tax benefits or more control over the company, they may also leave you personally liable as well.

A general partnership and sole proprietorship both leave the owner or owners liable to lawsuits and other financial obligations. A corporation, on the other hand, is considered its own entity that bears responsibility for legal actions, thus protecting its owners from liability.

Limited liability companies are another option that provides protection for their owners.

We Will Assist You In Choosing An Appropriate Entity

At the Law Office of Clifford J. Hunt, P.A., our lawyers will discuss the entirety of your business goals with you so we can help you choose the entity best suited for your needs. We have served business owners for over 30 years so we deeply understand how each option could benefit you.

You can email us or call 800-878-5829 to schedule a consultation with one of our attorneys. We are in the Tampa Bay area of Florida (Seminole) and serve clients throughout Florida, nationwide and abroad.