Starting a Business

The S Corporation

As I discussed in an earlier post, there are significant tax disadvantages of operating a business as a C corporation, most notably the existence of double taxation. That is to say that corporate profits are subject to taxation with a top rate of 35% at the corporate level and then are against subject to taxation […]

Limited Liability Partnerships (LLPs)

Limited liability partnerships are business structures that exist to protect partners from the wrongful conduct of other partners. In a traditional general partnership, every general partner is responsible for the conduct of every other partner as it relates to the business. So, an innocent partner could be held personally financially liable for the misconduct of […]

Limited Partnerships (LPs)

A limited partnership is a type of artificial entity consisting of general partners and limited partners. General partners run the business, while limited partners hold equity stakes in the business but do not have a say in its day-to-day operations. Because LLCs and corporations are usually better business structures for traditional businesses, limited partnerships are […]

The Corporation

Every entrepreneur seeking to start a small business must decide under what form the business will operate. As I discussed in a previous post, if the small business owner does not decide, the state will decide on that entrepreneur’s behalf. In previous posts, I discussed the sole proprietorship, the general partnership, and the limited liability […]

The Limited Liability Company (LLC) Part 2

In a previous post, I discussed the process of forming a limited liability company and the benefits of working with a business attorney to ensure that improper filings or flaws in the formation process do not jeopardize the benefits of limited liability. In this post, I will discuss business governance and potential tax ramifications of operating […]

The Limited Liability Company (LLC) Part 1

Starting a new business can be an extraordinary stressful and fear-laden endeavor, and the pressure to pick the proper business form can only add to this pressure. In a previous post, I discussed some of the pitfalls entrepreneurs face when starting a business without properly planning with a business attorney. For the entrepreneur starting a business, however, […]

Business Forms to Avoid

Every entrepreneur must decide under what business form the venture will operate. For those small business owners that do not decide, the state will decide on their behalf. There are five major business forms from which to choose: sole proprietorship, general partnership, corporation, limited liability company, and limited partnership. Simplicity of formation characterize the first […]

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