Corporate Formations/Business Structuring
Set Up Your Business Entity with Help from RTRLAW
Starting a business can be a daunting proposition with many questions you need to answer.
- Should I open an S corporation (S-corp), C corporation (C-corp), Partnership or Limited Liability Company?
- Which type of business is best for taxes?
- How do I register my business with the state?
- What are my rights and responsibilities to my shareholders?
There are many different types of corporations and entities you can set up, depending on if you have any partners, investors, employees, are a nonprofit, etc. The way you structure your business today can make a huge difference for future growth and when it comes to taxes as well.
An S-corp might be a good choice for a small business because it allows you to report income and losses on your personal tax returns and tax is assessed at your individual tax rate. This allows S-corps to avoid double taxation that occurs on corporate income. To qualify for an S-corp, your business must be a domestic corporation only, may only be comprised of individuals or certain trusts and estates, may not be partnerships, may not have over 100 shareholders, and may only offer one class of stock.
C-corps, on the other hand, are for your standard large corporations that must file their own tax returns and pay a corporate tax rate on income. Any income that is paid to shareholders through dividends will be taxed twice (the second time through the owners’ individual tax returns).
A partnership is a single business owned by two or more people. Each partner contributes to the business and shares in the profits and losses. Partners generally split duties, shares and profits/losses evenly but can be set up to be proportional based on the individual partner’s contributions. Taxes are not paid on income made by the partnership, but profits/losses are passed through to the individual partners to be taxed at their individual rates.
Partners also share all debts and liabilities, and the personal assets of all partners can be used to satisfy a partnership’s debts.
Limited Liability Companies (LLCs) are often a good choice for small businesses, partners and entrepreneurs because it protects its owners from personal responsibility for debts and liabilities. LLCs are a type of hybrid corporation with the characteristics of both a corporation and partnership. It allows taxes to pass through like a partnership, with liability protection similar to a corporation. LLCs offer a good deal of flexibility to business owners.
Because of the complex nature of business structuring, many businesses secure legal counsel before forming a business to assist them with the planning and selecting of the right entity and business structuring. RTRLAW’s Business Law attorneys can advise you on the various types of businesses available that meet your needs and can help you set up and register your business and file the appropriate paperwork with the state of Florida.
Our experienced attorneys take time to understand your business goals and can set you up for growth and success. We can also advise you on the right type of business for your tax situation. RTRLAW offers corporate formation services for a flat fee.
For more information, please contact us or call or text our Business Law attorneys today at 833-HIRE-RTR.
RTRLAW’s qualified lawyers are available to meet with you when and where it’s most convenient for you – over the phone, via video conference, at your office, or in person at one of our seven office locations in Florida, including Fort Lauderdale, Orlando, Tampa, Kissimmee, Lake Worth, Miami or Jacksonville.