555 Sun Valley Drive Suite N-4 |
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Roswell, Georgia 30076 |
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Telephone (770) 992-4325 |
Fax (770) 992-4367 |
Incorporations & LLCs |
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| I'm Setting Up A New Business. Do I Need To Incorporate or Set Up an LLC? |  |
Yes – you will probably need either a corporation or a limited liability company (LLC).
If you operate as a sole proprietorship, this leaves all of your personal assets at risk for business debts or lawsuits. So, for most businesses, we recommend incorporation or the formation of a limited liability company (LLC), so that you can have the benefit of limited liability protection.
Limited liability means that you, as the owner of the business, are not personally liable for the debts or obligations of the business. So you don't run the risk of losing your home, savings or other assets because of a business debt, lawsuit or other claim against your business.
It is important to remember that you must properly separate your business operations from your personal finances, and also follow other legal rules, in order to ensure that you keep your limited liability protection. We review these issues with all clients who are forming new businesses.
Which is Better For My Business -- Incorporation or Setting Up an LLC? |
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It depends on the type of business you have and how you intend to raise capital, among other factors. There may be business or tax advantages to choosing one over the other, but we would need to meet with you and understand the details of your business in order to advise you on this question.
Legally, you get the benefits of limited liability protection with both a corporation and a limited liability company (LLC).
An S Corporation is a regular corporation that has filed an election with the Internal Revenue Service to be taxed as a partnership. By making this election, a business owner can enjoy the limited liability protection of the corporate form, together with the pass-through tax advantages of a partnership.
A C Corporation is a regular corporation. In other words, a corporation that has not filed an "S" election with the Internal Revenue Service.
LLC is an abbreviation for "Limited Liability Company." This is a relatively new type of business organization, that combines the characteristics of a partnership and a corporation. LLCs have become very popular for small businesses.
When we meet with you to discuss setting up your new business, we will help you make this choice.
At your initial consultation, we will discuss the plans for your new business, the type of business you are starting, the number of owners, your goals for the business and how you plan to raise capital. After we understand your business and legal situation, we can advise you about incorporation or formation of an LLC.
Absolutely. We know that our corporate clients are so busy running their day-to-day business operations that they do not have time to keep up with minutes for their Annual Meetings, Shareholders Meetings and Directors Meetings. But these meetings are legally required, and it is important to keep your corporate Minute Book up to date.
Just give us a call if we can assist with your corporate minutes.
Absolutely. We work with our business clients to handle ongoing legal issues, such as drafting contracts, negotiating commercial leases, handling business disputes, defending you if someone has sued your business, collection of debts when someone has not paid you, other business lawsuits, filing a claim on your behalf in a bankruptcy case, and general business law advice after you get up and running.
We are here to provide full-service legal support for you and your company, and we want you to feel comfortable calling us whenever you have a legal need or concern.
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© 2007 by Baker & Stalzer, LLC. All rights reserved. IMPORTANT: The material in this web site is provided for general informational purposes only; it is not intended to constitute legal advice. Please see our Disclaimer page for further information. |
