When starting a new business, the first thing you should do is to create a business plan. The process of creating a business plan will cause you to answer the myriad of questions to plan your business. And once completed, the business plan can be used to assist you in obtaining the financing you need to get your business off the ground. One of the questions you will need to answer during the planning is, “What is the best business entity for my business?” A Georgia business attorney and a CPA can help you choose.
Considerations for Choosing a Business Entity
When choosing a business entity, you must consider several factors, including:
- How the Internal Revenue Service taxes each entity.
- How much protection you need from lawsuits.
- Whether you want to list your business on the stock exchange in the future.
- How many employees you plan on having once your business grows.
- Whether you want to open more than one location.
Certain entities, such as a sole proprietorship and partnerships, do not offer any personal protection against lawsuits. Corporations, limited liability companies and limited partnerships offer shielding for some or all of the owners from lawsuits against claims against the company.
The different corporate entities have different tax structures and some allow you to elect to be treated differently. Tax structures, protection from liability, ease of transfer, and future plans for the entity, all play an important role when choosing a business entity.
Contact a Georgia Business, Estate Planning and Probate Attorney
When you are ready to start your business, visit us to discuss your future plans and to learn more about the best business entity registration to pursue as well as how to incorporate your business into your estate plan to provide business succession upon death or disability. Call us today at 678.781.9230 to discuss your needs.
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.