If you are thinking of starting a business, one of the first legal tasks you need to complete is to choose a business entity.
A business entity is a state-level organization formed by one or more persons. In most states, you are required to file business documents with the office of the Secretary of State or a similar state agency to legally set up your business.
The business entity that you choose is critical to your business operations. It will determine how your taxes are determined and paid, how your employees are paid, and how ownership of the company is set up. It also determines your legal liability in case of legal disputes.
The different types of business entities include:
You should consult with an attorney before choosing a business entity because choosing the wrong one can cost you thousands in taxes —and serious fines and repercussions in the case of mislabeling a nonprofit. Fractional general counsel can help you by looking over your planned business operations and long-term goals to determine the best possible entity for your business.
Do you have a legal question? Don’t try to figure it out yourself. Contact our team today and we can discuss if our services meet your needs, or at the very least, point you in the right direction.
