Business and Corporate Matters
When starting a business, one of the first decisions that must be made in selecting the type of business entity. The three most common business entities are corporations, partnerships, and limited liability companies (LLCs). Each type has its own unique characteristics and tax implications. Hoyt and Stanford understand business and corporate matters pertaining to the law.
Corporations are separate legal entities from their owners and offer personal liability protection to shareholders. Shareholders elect a board of directors to manage the corporation. Profits are taxed at the corporate level, and shareholders are then taxed again on any dividends they receive.
Partnerships are businesses owned by two or more people. Partners share management responsibilities and profits (or losses). Like corporations, partnerships are taxed at the business level. However, unlike shareholders in a corporation, partners directly report their share of business income (or loss) on their personal tax returns.
Limited Liability Corporations (LLCs) are a business structure allowed by state statute. LLCs can be owned by one or many individuals or entities. LLCs offer personal liability protection to their owners and have the option of being taxed as a partnership or corporation.
Business and Corporate Law Attorneys in Lafayette, LA
It is best to seek professional advice before making any decisions about which business entity to form.