When starting a business, one important decision is the choice of business entity, such as a limited liability company, corporation, partnership, non-profit corporation, or some other entity. Last week in our blog, we focused on limited liability companies. This week, we will focus on when a corporation might be the right choice for your business.
Benefits of a Corporation
One of the most significant benefits a corporation offers is that it provides the most personal asset protection for its owners (shareholders) when established and operated correctly, as a separate entity. While a corporation requires more administrative work or governance than a limited liability company, the separation results in better protection for its shareholders and directors. When incorporating, it is important that the individual or individuals determine how many directors the corporation will have who oversee the business, who will serve as directors, as well as who will serve as officers.
Additionally, if you decide to go public, a corporation is the preferred entity because a corporation can sell shares of stock to raise money, can have different classes of stock, and is widely accepted as the entity of choice for large numbers of shareholders. If you plan on going public in the future, you should always work with an attorney and CPA to make sure you set up the company in the best way to benefit you when you go public.
Contact a Business and Estate Planning Attorney
If you are ready to start a business, contact an attorney at Grissom Law to help you set up the best business entity in such a way that your personal assets are as protected as possible.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.