Start Your Business Off With A Competitive Edge
Starting a business is an audacious undertaking. Business partners or an entrepreneur may have in-depth knowledge of the planned business offerings, the market demand for them and the basic financial and legal requirements of business formation. However, to cover all bases legally speaking, there is no substitute for the insights and protections that an experienced business law attorney can contribute.
At Keith Miller Patent Law, in Arizona, our business lawyers help clients select and establish suitable business entities such as sole proprietorships, partnerships, limited liability companies (LLCs), corporations (C corp, S corp and B corp varieties) and nonprofit organizations.
Forming Business Entities: Pros And Precautions
To be functional and legally operational, a new business must have a structure and plans that meet both legal requirements and practical criteria, as described below:
- Sole proprietorship: This type of business is easy to form, and the owner will have complete control of the business. However, the owner’s personal assets may be at risk. If you own a sole proprietorship, you could be held personally liable for business debts.
- LLC: A limited liability company keeps owners’ personal assets separate from business assets so they will not need to worry about personal liability for business debts. However, members of an LLC are considered self-employed and thus will need to pay self-employment taxes toward Medicare and Social Security.
- Partnership: Limited partnerships (LPs) and limited liability partnerships (LLPs) are usually best for two or more individuals who want to start a business together with limited personal liability.
- Corporation: The most important thing to understand about a corporation is that it is an entity completely separate from its owners. The corporation itself can be held legally liable while providing its owners the highest amount of protection. However, forming and maintaining a corporate structure is expensive and requires detailed operational processes with higher record-keeping and reporting standards than those of other business structures.
- Nonprofit: While it is technically a type of corporation, a nonprofit organization is generally tax-exempt, as it is organized to do public good. However, a nonprofit organization must keep meticulous records and regularly report on statistics to prove its ongoing nonprofit status. Maintaining a nonprofit status can be challenging. Sound legal advice is essential.
In addition to helping you create a legal entity for your business, Keith Miller Patent Law can help you protect your ideas through trademark registration and the creation of patent applications. Get in touch with our firm today for guidance on how to create and sustain a business that will succeed.
Discuss Your Business Plans With A Technology-Savvy Attorney
Keith Miller Patent Law has been a reliable resource of information and guidance for Arizona residents starting businesses and registering trademarks for almost a decade. To schedule a consultation, call 480-582-0021 or inquire online.