Business Formation Lawyer Connecticut
If you’re deciding on a legal structure for your business, you may want to consult a business formation lawyer Connecticut residents trust. A lawyer from Eric Lindh Foster Law, LLC can thoroughly explain all the legal entities and help you make a wise choice. Here is an overview of the legal entities you can choose from.
With a sole proprietorship, there isn’t a legal difference between the owner and business. This business entity is run by only one person and common in small businesses. A sole proprietorship is relatively simple and inexpensive to set up and allows the owner to have full control of the business. However, the owner will have unlimited personal liability for any liabilities the business incurs.
A partnership is a type of business legal structure that involves two or more people. A partnership agreement is generally easy to create and profits and losses in the business are passed through the owner’s personal tax returns. Like with a sole proprietorship, owners of a partnership are personally responsible for business liabilities.
A corporation is separate from the people who own or run it and is the most complex business structure. Corporations are typically more suitable for larger companies with multiple employees. With a corporation, shareholders have limited liability, so they are personally responsible for any liabilities the company incurs. Investors also prefer to invest their money in a corporation. Since a corporation is more difficult to establish, it’s important to work with a Connecticut business formation lawyer.
Limited Liability Company
A limited liability company (LLC) has one or more owners and combines the best aspects of sole proprietorships, corporations and partnerships. The main benefit of forming an LLC is that owners have limited liability. If the business incurs debts or claims, no one can go after an owner’s personal property, like homes and vehicles. An LLC is also typically easy and inexpensive to establish and allows pass-through taxation. However, LLCs aren’t generally attractive to outside investors.
How to Choose the Right Business Structure
For people just starting a business, it’s not always easy to select a structure. If you’re currently in this situation, you may want to consider your business’s current financial needs and risks. For instance, if you have a startup and want to keep everything as simple as possible, you may want to think about a sole proprietorship. However, keep in mind that it’s more difficult for sole proprietorships so secure funding from outside investors.
If you want limited liability, forming an LLC might be a good option. As mentioned above, if you have an LLC and get sued, no one can come after your personal property. They can only go after the business.
Schedule a meeting with a Connecticut business formation lawyer from Eric Lindh Foster Law, LLC today to discuss your needs.