Share

Estate News --- Observations of a Trust and Probate Attorney

Tuesday, August 16, 2016

Choosing a Business Entity: Part II

Working with a Business Planning Lawyer to Choose a Business Entity: Part II

A previous post looked at some of the most common business entities that an Ontario business planning lawyer will recommend for clients. From the simplicity of a sole proprietorship to the complexity of an S corporation, that piece shared some advantages and disadvantages of each entity when it comes to implementation, accountability, and taxation.

With so much at stake, it’s a good idea to familiarize yourself with all of the choices for setting up your business the right way. Most of the information in these two articles applies to Federal aspects of business ownership, as states have their own requirements. That’s just another reason to work with a qualified Ontario business planning lawyer, as he or she will be able to outline specific state laws and regulations that apply to your situation. This is a very limited view into the different business entities, so consider it a jumping-off point for more research.

Today’s post introduces a few more options that an individual might want to discuss with a business planning lawyer in Ontario before making a decision. 

·         Single Member Limited Liability Company: Sometimes a single business person prefers for their business to be treated like an LLC. Of course, the difference is that there is only one member. Like a sole proprietorship, the member may file taxes using his or her individual taxpayer form 1040.

·         Limited Liability Limited Partnership: Because it is only an option in some states, the input of a California business planning lawyer is particularly helpful when considering this entity. Just as a limited liability partnership works similarly to a general partnership but with limited liability, a LLLP works similarly to a limited partnership with the addition of limited liability. Tax-wise, it works much like a general partnership, too.

·         Professional Corporation: This type of entity is only available to specific types of businesses and limits the business to providing only those services. There are also stringent regulations on who may or may not hold shares in the company. A doctors, attorney, or other professional would likely want to discuss this type of entity with a business planning lawyer when starting their own practice.

·         Corporation Sole: With some rising popularity, this type of entity is generally reserved for religious purposes. The temptation to use this business entity is huge because it can circumvent Federal taxes. That said, the IRS recognizes that businesses are attempting to get out of their legal tax obligations in this way, and they are not pleased. It is highly recommended to consult with an experienced Ontario business planning lawyer before even considering corporate sole.

Whether this list has made your head swim or has cleared your thinking on the subject, choosing a business entity is something that should be done carefully. Working with an Ontario business planning lawyer is a great way to make sure you’re seeing all of the implications before making a legal commitment. Contact us at 989-985-5522 or bha@bristolhaynes.com for a complimentary consultation.


Archived Posts

2016
December
November
October
September
August
July
January
2015
2013
2010
2009


Brock, Robinson & Associates assists clients with Estate Planning, Wills, Trusts, Special Needs Planning, Pet Trusts, Probate & Estate Administration, and Family Business Preservation in Chino, California as well as Chino Hills, Inland Empire, Pomona, Rancho Cucamonga, Ontario, Montclair, Diamond Bar, West Covina, Covina, Glendora, San Dimas, La Verne, Claremont Fontana, Riverside, Colton, Corona, San Bernardino, Redlands, Orange, Brea, Yorba Linda, Fullerton, Hacienda Heights, Eastvale, Norco, Mira Loma, Alta Loma, Upland, Rialto, Highland, Loma Linda and Grand Terrace in San Bernardino County, Los Angeles County and Orange County.



© 2018 Brock, Robinson & Associates | Disclaimer
15220 Central Ave, Suite A, Chino, CA 91710
| Phone: 866-529-4632

Asset Protection | Elder Law | Advanced Estate Planning | Gun Trusts: Targeted Estate Planning | Business Succession Planning | Guardianship | Estate Planning | Pet Trusts | Special Needs Planning | Business Law | Probate / Estate Settlement | | Legacy Recordings | Resources | About Us

Attorney Website Design by
Zola Creative