LLC v. Corporation
1) “Do I need to be an LLC when I start a business?”
There are several reasons why you may want to form an LLC or Limited Liability Company to conduct all or part of your business affairs. However, not every person or business needs to form a separate entity, such as an LLC, in order to achieve the desired result. An LLC may be the wrong entity to achieve your goals. It’s important to remember that you and your plan is unique. You are smart enough and hard-working enough to conceive of a business. Speaking with an attorney about your special circumstances makes good sense.
Personal asset protection is one issue cited for forming an LLC. This is true. It is also true that the same result can be achieved by purchasing insurance. Also, there are many, many ways that an LLC does not protect your personal assets. How you treat the LLC may result in exposure of your personal assets.
2) Tax Planning
Tax planning is especially important in deciding what type of entity you choose to form to conduct your business. Keep in mind, the entity is a creation of state statute. How you pay taxes is a function of the federal IRS. So, for instance, one can create an LLC in Oregon and elect to be taxed at the federal level as a subchapter “S” corporation, a partnership, or have the LLC “disregarded” for federal tax purposes, thereby capturing all of the LLC’s profits and losses onto the LLC member’s personal tax income return. LLCs offer a broad range of tax planning opportunities. Again, you and your circumstances, your goals, are unique. I enjoy working on these issues and I take pride in seeing my clients succeed.
You are smart enough and hard-working enough to conceive of a business. I can help provide you with business solutions tailored to your personal and business needs.
3) Full Service Business Solutions
One of the Seven Habits of Highly Effective People is to “begin with the end in mind.” For the business person, that means being able to understand how businesses grow, managing employees and independent contractors, and having clear contracts written to memorialize your business transactions. It also means understanding how money works over time, both in terms of gross receipts, the “costs” of having employees that are in addition to salary, and depreciation of equipment. When we talk about your business, part of that conversation will address how the business will grow, earn profit and the exit strategy. I work in coordination with business development specialists and CPA’s so that I can deliver to you the finest business structure, built for success and targeted on growth.
As a lawyer, it does neither me nor my clients’ any good if I help create a business that ends up failing – and we’ve all read the statistics, 90% of new business fail within five years. I want to be your lawyer five years down the road when it’s time to expand, replace equipment, and acquire property. I want to be your lawyer twenty years down the road when it’s time to sell the business or pass the business on to the next generation.