To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss your options.

What business entity is right for your business?

When you are starting your first business, you probably experience high levels of excitement, hopefulness and drive. You may want to hit the ground running to reap the rewards of success right away.

Such anticipation is normal and can help you get through challenging times. However, if you rush through things, you can end up making mistakes that will be difficult and costly to undo.

One of these can be choosing the wrong structure for your business. The entity you select will have a significant impact on the way you run your company, the taxes you pay and the amount of liability you face. Become familiar with the different types and then speak to an attorney and an accountant for professional advice on which structure would be best for your business.

  • Sole proprietorship is the simplest business formation and can be a good starting point before diving into more complex structures. It gives you complete control but has a high risk of liability because your personal and business assets are not separate.
  • Partnerships are similar to the above except involve two or more people. You can have a limited partnership that gives one person all the control and liability and the others limited control and liability, or you can have a limited liability partnership that protects everyone.
  • Corporation covers several options. A C corp makes your business a completely separate entity, requires double taxation on profits and can involve stockholders. An S corp limits tax consequences but also the number of shareholders. Others in this category are B corp, close corporation and nonprofits.
  • LLC, or limited liability company, combines the benefits of partnership and corporation. It allows business assets to be separate to reduce liability and has lower tax rates. However, it falls under self-employment and may require reforming when ownership changes.

Each one has its own advantages and disadvantages, so which one is right ultimately depends on the purpose of your business and on your long-term goals.

No Comments

Leave a comment
Comment Information

Request Your Free Telephone Consultation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

This site uses Google's Invisible reCAPTCHA, which is subject to Google's Privacy Policy and Terms of Use.


North Office
950 S. Winter Park Dr
Suite 290
Casselberry, FL 32707

Toll Free: 888-681-4389
Casselberry Law Office Map

South Office
14115 Town Loop Blvd #300
Orlando, FL 32837

Toll Free: 888-681-4389
Orlando Law Office Map

At Korshak & Associates, P.A. we love feedback from our clients. Please take a moment and tell us how we’re doing!

Review Us