Finding The Right Business Structure Is Essential

Determining the best structure for your business is one of the most important aspects of starting your own business. There are many factors to consider when structuring your business, but our knowledgeable attorneys can guide you.

Experienced legal guidance at the start can help you avoid business legal problems down the line. Contact The Law Offices of George Castrataro, P.A., for help determining which structure is right for your business. We are dedicated to helping small businesses in South Florida succeed.

Choosing The Structure That Fits Your Business Needs

There are various types of business structures to choose from. These structures define your business, including:

  • Sole proprietorship — This structure involves an individual entrepreneur who also serves as the business entity.
  • Partnership — There are many types of partnerships. However, they generally involve many parties, individuals or businesses that combine their commercial interests together.
  • Corporation — In this structure, businesses or individuals act as a single unit.
  • Limited liability company (LLC) — This structure benefits from the taxation of a partnership, but acts as a corporation. Your personal financial assets are separate from your business.

It is critical to choose the structure that will benefit your current and future business endeavors. However, there are many other factors to consider when deciding on one of these structures.

What Are The Services You Will Provide? Consider The Risks.

Your business structure directly relates to the services or products you offer. For example, a sole proprietorship or partnership would generally suit the needs of a small-business bakery. A company that works with stocks or real estate may want to structure as an LLC to protect its finances.

Calculating the risks your business may face plays a large role in deciding which structure is best for your business.

Evaluate The Structuring Process

Establishing each business structure requires different expenses and processes. Forming an LLC or a corporation can be expensive and time-consuming. There are filing fees and forms you must file. These structures also often involve investors or a board of directors that you must establish while structuring your business.

Meanwhile, sole proprietorships and partnerships do not require any fees or forms.

Examine The Tax Situation

Though taxes are often the last thing anyone wants to think about, they are a critical element to consider when choosing a business structure. Business structures operate differently when it comes to taxes, and you must choose the best option for your situation and needs.

Sole proprietorships, partnerships and LLCs have pass-through taxes. This means that business owners calculate their business' profits and losses, then report it on their own tax forms.

Since a corporation acts as a single entity, it would have its own tax filing and returns.

Get Legal Guidance To Help Your Business Succeed

Call The Law Offices of George Castrataro, P.A., at 954-573-2003 or contact us online for a free consultation with an experienced business attorney. With an office in Fort Lauderdale, we offer affordable legal services to small businesses and nonprofit organizations throughout South Florida.