Choosing A Business Entity
When establishing a new business, your choice of entity is critical. There are many subtle nuances and pros and cons of each entity type to consider. It is important to talk with an experienced lawyer who can explain your options and help you make the best choice for your business.
At Korshak & Associates, P.A., we help clients with all aspects of business formation in Orlando and the surrounding areas of Florida. Our business formation lawyers have more than 60 years of combined legal experience. They provide the quality representation normally associated with large downtown law firms combined with small firm affordability and personalized service.
Business Entity Choice
The type of entity under which you choose to operate your business is a critical decision that will impact its long-term success. Each entity type has different tax consequences and operating benefits and limitations.
Our lawyers will take the time to understand your long-term business objectives and help you choose from among the options available to you, including:
- Sole proprietorship: In a sole proprietorship, there is no legal distinction between the owner of the business and the business entity itself. Although the setup, tax work and other administrative factors are simpler with a sole proprietorship structure, there is greater exposure to individual liability with this type of business.
- Corporation: A C corporation or S corporation structure can offer unlimited growth and expansion opportunities, but the taxes can be much higher.
- General partnership: A general partnership can involve greater simplicity and some tax advantages, but there is unlimited liability with this structure, as well as other risks.
- Limited liability company (LLC): An LLC is a hybrid entity type that combines aspects of partnership and corporate structures. This structure is flexible, but it is not a public entity and there can be more limitations to raising funds in this entity type than in others.
Each person establishing a business will have unique objectives and needs regarding entity choice. We invite you to contact an Orlando business formation attorney from our firm to discuss your options. Call 888-681-4389 toll free.