There are a number of different entities in which a business may be conducted. Aside from the basic sole proprietorship, a business owner has the choice of the following:
- Partnership – consists of two or more owners.
- Corporation – a separate legal entity with one or more shareholders. For tax purposes only, there are "C" corporations and "S" corporations.
- Limited Liability Company (LLC) – a separate legal entity with one or more members.
When considering the adoption of a business entity, the most important features are the limitation of personal liability and tax minimization.
The entities listed above all have their strengths and weaknesses as they relate to a particular structure and type of business. Having worked with hundreds of businesses, Mr. Humber is uniquely qualified to explain these positives and negatives and to work with you in selecting the proper structure for your business.
Once the entity has been selected, Mr. Humber can assist clients with the preparation and implementation of shareholder agreements, operating agreements and other documents that will govern the operation of the business.
In order to minimize future disputes, it is important to have the agreements in place before the disagreements arise. This proactive approach can minimize the extent and expense of problems in the future.