How to Choose the Right Business Entity
Selecting the right business structure is critical to the long-term success of your company. LegalShield makes the process quick and painless.
$145 + State Filing Fees
The Most Common Business Structures
Step one is to familiarize yourself with the most common types of business structures.
Sole Proprietorship: If you start conducting business and don’t file for another entity type, you’re considered a sole proprietor. Sole proprietorships offer virtually no legal liability protection.
Limited Liability Company (LLC): An LLC protects your personal assets from business debt, offers simplicity in management and flexibility in taxation. They are a great choice for many businesses.
C Corporation: C Corps offer the strongest protection from personal liability but are more complex to set up and manage. Also, C Corps are subject to double taxation in certain situations.
S Corporation: S Corps combine the formality and protection of C Corps with the flexibility and pass through taxation of LLCs, which allows you to avoid the double taxation of C Corps.
Entity selection requires you to consider critical tax and legal factors that will impact your business over the long-term. Set yourself up for success by getting legal help. Launch by LegalShield begins with a business questionnaire and a consultation with a local attorney to ensure you make the right decision.
Understand the Factors that Should Drive Your Decision
There are a variety of factors that make one entity more appropriate for your situation than others. Here is a list of key considerations.
- What are your business aspirations? Small side business or growing a larger organization?
- Do you plan to hire employees?
- Are you planning to raise money?
- Is your business at low or high risk for being sued?
- Do you plan to have partners? Need to have shareholders?
- What is the best structure for taxes given the nature of your business and projected revenues?
- Do you have significant personal assets, like a home or retirement account, to protect?
When you join Launch by LegalShield, your attorney will take the time to discuss the various factors that make one business entity a better fit for your needs than another type. Don’t stress and guess. Legalshield is here to guide you through the entire entity selection and launch process for a one time fee of $145 + state filing fees.
Get Legal Help for All Your Business Launch Needs
Once you’ve selected your entity type, you’ll need to make sure your business name is available, prepare and file Articles of Organization/Incorporation and secure an EIN. All of these tasks are handled by your attorney as standard benefits of Launch by Legalshield.
Once you have legally formed your business entity, there will be a stream of additional tasks to complete and legal questions you may have. Do you need to apply for a general business license? Are you required to secure any special permits or sales tax licenses? Do you need help drafting and negotiating lease agreements, employment contracts or setting up financing terms with vendors?
Launch by LegalShield includes three months of our small business legal plan to help with any and all business legal needs. Your attorney is available for consultation, document review and will even make phone calls or write letters for no additional cost.
Start your business today with LegalShield and know that your legal entity has been formed correctly and that you have the ongoing legal support you need to grow a successful company.
Launch by LegalShield includes a consultation with an attorney, business name check, preparation and filing of all entity formation documents, your EIN and three months of legal support.
$145 + State Filing Fees
Key Features of Our Small Business Legal Plans
LegalShield’s business plans can help you in the following areas.
Speak with your provider attorney on an unlimited number of business legal issues.
One hour of legal research on each matter is included at no additional charge.
Your provider attorney can make phone calls or write letters on your behalf.
Depending on the type of plan, a designated number of debt collection letters are included each month at no additional charge.
Have your provider attorney review documents and draft contracts.
Preparation of documents is provided under the preferred member discount.
Your provider attorney can defend you in covered civil lawsuits.
Depending on the type of plan, a designated number of pre-trial and trial hours are included at no additional charge.