Stiles Law has a question for you this week: What’s your 2020 vision? Are you thinking about starting your own business? Brian Lynch, our business attorney, is here to discuss the different types of structure a new business should consider.
The first is Sole Proprietorship, which means conducting business in your own name. The second is General Partnership which entails two or more people working together. LLC, an abbreviation for Limited Liability Company, is the third; and the fourth is a Corporation.
There are four main business structures: sole proprietor, partnership, limited liability company (LLC), and corporation. An entrepreneur may choose to structure their business as an LLC or corporation over sole proprietorship or partnership to shield personal liability from the activities of the business. In other words, creating a separate entity can protect personal assets from the debts of the business. Creditors of sole proprietors and partnerships are able to satisfy debts by seeking personal assets of the owners.
The first step to establish a corporation or LLC is assembling a team to develop a strategy that will work best for each member. The second is to have an attorney properly draft documents and file paperwork with the state. The third is ensuring you have a good accountant as there are a number of important tax considerations.
If you have any questions about starting a business, contact Stiles Law by calling (781) 319-1900.
Copyright © 2019 Stiles Law, All rights reserved. Stiles Law is a Massachusetts licensed law firm and all content is based on Massachusetts law. The information presented above is meant to be used for general informational purposes and it should not be construed as legal advice or legal opinion on any specific facts