If you’re an entrepreneur, you no doubt are dedicated to getting your venture off the ground. This entails choosing the appropriate business organization to meet your needs, and it’s one of the most important initial decisions you will make. Having the assistance of a reliable business lawyer is crucial, which is why so many people rely on the guidance of Dennis P. Faller, Attorney. The first step to making an informed decision is knowing your options, as each structure offers unique benefits.

A Business Lawyer Explains 3 Types of Organizations

1. C Corporation

This is an entity that is owned by a collection of shareholders, each of whom has limited personal liability in the event the business accrues debt. In this case, an individual shareholder will be beholden to only the amount they invested. A C corporation is a good option if you are searching for venture capital or would like to offer stock options to employees. Additionally, a C corporation makes it possible to retain the maximum amount of earnings within your business to facilitate growth.

2. S Corporation

While similar to a C corporation, an S corporation entails a specialized tax status the prevents duplicate taxes from being applied to a business (which sometimes happens with C corporations). It requires individual shareholders to report business earnings on their personal tax filings; this is perhaps the most compelling reason to organize as an S corporation, in addition to a reduction of other tax burdens such as Medicare and Social Security.

3. Limited Liability Company (LLC)

An LLC can provide benefits associated with each of the above corporations. It’s an excellent option for startups that might incur financial losses for a few years before becoming financially sound. It enables more flexibility in management arrangement and profit sharing.

Possessing experience in a range of legal areas, from family law to estate planning, Dennis P. Faller, Attorney in Wapakoneta, OH, is proud to assist clients throughout Auglaize County with their most pressing legal issues. To schedule a consultation with a business lawyer, contact the firm online or call (419) 738-4578.