How Well Is Your Business Organized?
The number one mistake I have seen small businesses make is to not pay attention to how they are organized. Failure to do so can have a significant impact on liability, taxes, and the ability to transfer the business by sale or inheritance.
Small businesses have the option of operating as a sole proprietorship, partnership, c corporation, s corporation or limited liability company. Are you confused yet?
A sole proprietorship confers no liability protection, insures maximum payment of taxes, minimum ability to deduct expenses, and no ability to transfer the business as a going concern either by sale or upon death. A partnership is in the same boat – with the added problem of inheriting all of your partner’s liabilities. Corporations offer protections and tax shelters at certain costs. Limited liability companies solve some problems and create others. What should you do?
How your business is organized is the most important decision you will make. Call an experienced Bloomfield Hills business attorney at (248) 432-1612 for a free consultation.