Launching a business requires a crucial decision: choosing the right Business Structure. This choice significantly impacts on the protection of personal assets against legal liabilities. Delve into our overview of available options and discover how Jurado & Associates, P.A. can guide you.
Sole Proprietorship
A sole proprietorship, owned by an individual, merges the owner and business into one legal entity. While it eliminates the need for complex documentation, it also intertwines personal and business assets. As there is no separation between the proprietor and the business, any business-related debts or liabilities can potentially affect personal assets. Opting for a sole proprietorship may seem tempting for its simplicity but is strongly discouraged if liability protection is a priority.
General Partnership
Slightly more intricate than a sole proprietorship, a general partnership is a separate legal entity recognized when two or more individuals or entities come together for a business. This structure offers advantages, such as pass-through income tax status, avoiding double taxation. However, akin to a sole proprietorship, a general partnership lacks personal liability protection, exposing partners’ personal assets to business-related liabilities.
Corporation
Corporations, distinct from their owners, are established by filing articles of incorporation. S corporations provide a flow-through tax benefit, avoiding double taxation, while C corporations offer more flexibility regarding shareholders and stock types. Unlike partnerships, both types of corporations provide liability protection. Business and individual assets remain legally separate, ensuring that lawsuits, liens, or judgments related to the business only impact the assets of the business.
Limited Liability Company (LLC)
The LLC, combining elements of a general partnership and a corporation, offers liability protection and pass-through tax benefits. Formed by filing articles of organization, an LLC does not require an operating agreement. While a single-member Florida LLC may be less effective for liability protection, a multiple-member Florida LLC, considering recent legal developments, becomes a compelling choice.
Making Informed Decisions with Jurado & Associates, P.A.
Liability protection is a critical factor when selecting a business structure, and this decision requires professional legal guidance. The attorneys at Jurado & Associates, P.A. possess extensive experience assisting entrepreneurs in choosing the optimal business structure aligned with their goals. From aiding in the formation process to providing ongoing guidance, our team ensures your business decisions lead to long-term success.
For more details on our comprehensive business services, feel free to contact us at (305) 921-0976 or email directly at [email protected].
