How to Choose the Right Business Entity

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 lawyer to ensure you make the right decision.

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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 lawyer 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 lawyer 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.

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Finding solutions to your legal issues doesn’t have to be stressful, complicated or expensive.

LegalShield puts the power of legal representation within reach of any individual, family or business. We work hard to make it easy, simple and affordable to get the legal help you need, when you need it.