Consulting a lawyer about incorporating a business prevents confusion, saves money, and starts your endeavor off on the right foot. In Goshen, NY, John E. Bach Attorney at Law offers wise counsel and effective representation to owners of startups and established businesses. Here, attorney Bach answers questions that frequently arise throughout this legal process.

FAQs About Incorporating Your Business: A Lawyer’s Answers

What Type of Incorporation Should I Choose for My Company?

Starting it as an S corporation avoids double taxation at the corporate and individual levels, which affects a C corporation. In fact, S corporation shareholders are taxed only at the individual level. However, if you plan to issue preferred and common stock, starting as a C corporation is a wise choice. A limited liability company (LLC) is another corporate option.

What Is an LLC?

An LLC is a corporation that provides limited protection of company owners from personal responsibility for their company’s liabilities and debts. LLCs combine the fiscal benefits and legal protections found in traditional corporations with the freedom of control found in partnerships and sole proprietorships.

Where Should I Incorporate My Business?

Some business owners incorporate in Delaware because of its favorable corporate laws. However, incorporating in the state where you do business is easy and will save you money. LLCs are incorporated in the state where owners operate their enterprises. 

Does My Choice of Incorporation Affect My Taxes?

There are several differences beyond the S and C corporation double taxation issue. For example, traditional corporation owners don’t pay taxes on corporate profits until distribution takes place. LLC owners, or members, must pay taxes on their share of profits, whether they’re distributed or not.

John E. Bach Attorney at Law is skilled at helping business owners develop solid corporate, tax, and estate planning strategies. You can rely on this lawyer’s 41 years of knowledge and experience to guide your decision-making process. Before you decide how to incorporate your business, consult John E. Bach Attorney at Law in Goshen, NY. Contact the firm through their website now, or call (845) 294-7941 to schedule your consultation.