It is wise when thinking about starting a new business to get the advice of legal and financial consultants to select the entity best suited to meet your goals. Our firm will assist you in selecting the proper entity type, creation of that entity, maintenance of that entity and dissolution of that entity. We also advise businesses of all types and at all stages of development in the areas of contracts, leases and other agreements.

A sole proprietorship is the simplest type of entity to form or to dissolve. An EIN number is required only if the sole proprietorship will have employees. If the business name does not contain the name of the owner, the business name can be registered with the Department of State to reserve its use.

Partnerships are businesses owned by two or more people. They can take four forms: general partnership, limited partnership, limited liability general partnership and limited liability limited partnership. In a general partnership, all partners are general partners and they share in the management of the business. A limited partnership is comprised of two classes of partners: general partners, who participate in managing the business, and limited partners, who invest in the business but do not participate in decision making. General and limited partnerships may elect to become limited liability partnerships (LLP). By registering as a LLP with the Department of State and complying with certain rules and regulations, the personal liability of the partners is limited.

There is no limit to the number of members in a limited liability company (LLC). The investors in an LLC may manage the business themselves or turn management over to an individual hired for that purpose. The structure of the LLC is directed by the operating agreement drawn up by the members. The members of the company have limited personal liability for the debts of the company, but the advantage of no corporate tax on the profits of the company.

A corporation is established by law to operate a business as a separate and distinct entity and is more complex in structure. There are two types of corporations, S-Corp and C-Corp. The main difference is in the way they are taxed. S-Corps are generally smaller in the number of shareholders and have tax advantages over the C-Corp. A C-Corp is usually a larger business with greater numbers of shareholders and its profits are taxed before being passed to the shareholders.