Whether you know what business you want to form or need advice on the benefits and risks associated with each business type, Rob Rhyne Law can help. Additionally, ensuring the proper paperwork is in place to protect you and your business is critical. Documents like operating agreements, partnership agreements, and by-laws are an important step in starting your business.
This default business type does not require owners to register with the state, making them easy to form and giving the owner complete control of their business. By not forming a separate business entity the business assets and liabilities are not separated from your personal assets and liabilities.
If your business will have two or more owners, Partnerships are the simplest structure to setup. Depending on the type of partnership established, personal liability will vary but profits and losses will pass to the partners. Partnerships are encouraged to create partnership agreements to protect the partners in the event they disagree.
Limited Liability Companies (LLC) have the benefit of being easy to manage and allow the owners to be flexible in their tax options while providing owner liability protections. LLCs are encouraged to create an operating agreement detailing out various factors on how the business will operate, roles and responsibilities, exit strategies, and disputes.
Understanding the benefits of the different corporations (C-Corp, S-Corp, Non-Profit) is critical in determining the type of Corporation the owners want to form. Tax exemptions and Double Taxation situations, or the ability to take the corporation public, may be determining factors in which corporation type the owners form. Corporate bylaws outline the rule in which a corporation will operate.
Copyright © 2023 Rob Rhyne Law, L.L.C. - All Rights Reserved.