Business Ownership Structures to know about before starting a business in the New Year

November 13, 2020

business ownershipIf 2021 will find you starting your own business, you’ll quickly learn there will be many decisions to make along the way. One of the most important is the ownership structure you select since this can play a major role when paying taxes, protecting you against liability after an accident, and many other situations. Depending on the type of business you open, whether or not you will have partners involved with your business, and your specific financial situation, it will be beneficial to learn more about what structure will best suit you and your needs. To get the details you need to make an informed decision, turn to business attorneys in Palm Harbor FL from The Law Office of Robert Eckard & Associates.

Ownership Flexibility

If you will be running your business as a solo operation, you can be like most people and choose a sole proprietorship as your business structure. However, if you will have others also acting as owners, you may want to consider a Limited Liability Company, better known as an LLC. Though both offer large amounts of flexibility in how the business can be run, an LLC will be easier to operate if you will have partners. To begin with, an LLC gives you the option of having all owners involved in the day-to-day operations of the business, or will instead allow you to appoint certain owners to run the business while others choose to remain only as investors.

To ensure you and your other owners are on the same page prior to starting your business, go over all necessary details with an experienced Palm Harbor business attorney.

Financial Needs

In most situations, a sole proprietorship will have fewer financial needs initially than an LLC, corporation, or even a partnership. Therefore, take your financial needs into consideration before deciding on your business ownership structure. As an example, if you will require bank loans to get your business started, chances are the bank will look more favorably on you if you have formed an LLC, since it will know this type of structure will protect you from certain financial liabilities. To discuss which structure would be best for your business, look to a knowledgeable Palm harbor business lawyer for guidance.

Paperwork and Expenses

If you are wanting to start your business with as little funding and paperwork as possible, a sole proprietorship or partnership are much easier structures to use. However, if your business will be a bit more complex, you will likely need to work closely with Palm Harbor business attorneys to form either an LLC or corporation. Yet when forming either of these businesses, you will need to pay close attention to the paperwork and expenses associated with each. For example, forming an LLC or corporation will often require fees that could approach $800 in some states, and will also require the filing of formal documentation and the election of officers to run the company.

You Can Change Your Mind

For many new business owners, one of the most common mistakes they make is assuming the business structure they initially select must be the only one they can ever use for their business. However, the fact is you can at any time change the ownership structure of your business. For example, if you start out as a sole proprietorship but experience tremendous growth, you can change your structure to a corporation or LLC. Prior to doing so, however, speak to Palm harbor business lawyers you know and trust.

To get your questions answered about various ownership structures, consult soon with business lawyers in Palm Harbor FL at The Law Office of Robert Eckard & Associates.

Our Testimonials

What Our Clients Say

Drew Patterson is an exceptional, multifaceted attorney. He continually strives to understand the intricacies of our business and produce results. He is highly recommended.

I dealt with Drew on a business lawsuit and he did a hell of a job, being very thorough and winning the case for me. He also recommended me a very good thorough lawyer for a different lawsuit and I'm very pleased with everything that Drew has done not only in the one case but his referrals as well. Would definitely recommend and refer friends to him.

I cannot express enough the immediate efforts of Drew to solve the problem at hand was something you don't see often nowadays. Drew was able to completely prevent something from happening that would have changed the course of my life. If anyone wants a lawyer that makes you feel like you are his number 1 priority hire Drew!!!! Definitely recommending him to anyone that is in need of legal counsel.

Great to work with and Very effective! Many Thanks to attorney Drew Patterson, who handled a business lawsuit for me in a very professional and timely manner resulting in the case being dismissed. In my opinion, Drew was very knowledgeable, asked pertinent questions, explained things easily and understandably, and was a pleasure to work with. He gets it done! If I need an attorney again, Drew will be the first one I call. Additionally, the staff at Robert Eckard & Associates were always courteous and helpful.

Thank you for all you did for me during this difficult time I couldn’t ask for a better team of lawyers even when I was lamenting the speed of things, you guys are professional, tenacious, and know your sh-t!.

view all testimonials
Stay Connected

Get Updates About Our Firm

Our Attorneys encourage client input to customize a strategy to provide the legal services you deserve. We provide experienced representation for those in Florida and now Texas.