Are You Starting a New Business in Florida? Read This
There are few things more exciting than starting a brand new business. The possibilities are endless. After all, it has been reported that even major companies like Google, Apple, and Nike got their start in a garage. In order to set up a business that will be able to thrive, you need to give it a proper foundation. This means selecting the appropriate legal form for your new company. While there are always risks in the business world, you can dramatically reduce the risks that come with starting a new business by selecting the correct legal form for your company. If you have any questions about Florida business formation, please contact an West Palm Beach business litigation attorney today to discuss your legal options.
The Top Four Things You Need to Consider When Forming a New Business
- Upfront expenses: When setting up shop, every penny matters. Some legal forms come with significantly higher upfront costs as well as ongoing administrative fees. For example, sole proprietorships and partnerships are cheaper to set up and to maintain than corporations and LLCs. However, it is important to understand that the less expensive forms also provide little liability protection. This is a tradeoff that must be taken into consideration before you make your final decision.
- Potential liability: While limited liability companies (LLCs) and corporations do have higher start-up costs, they also provide significant protection from legal liability. Without this type of protection, your personal assets could be put at risk. For prospective business owners, this is one of the most important issues that need to be addressed before you move forward in the process.
- Taxation: The legal form of a business will also have a significant impact on the type of taxation that the company will face. In some situations, it is advisable to operate your business as a pass-through entity. While in other cases, you may want to focus how many business deductions will be available to you, or on how you can keep money within the company.
- The future: Finally, when forming a business, you also need to keep the future in mind. Certain business forms make it easier for you to grow your company. For example. A sole proprietorship can not grow like a corporation can. Further, corporations and LLCs are much easier to transfer to other parties. In the event that you might want to someday cash out of your business, this could be an important thing to keep in mind.
Contact Our Office Today
In order to reach its full potential, your business needs the proper legal structure. At Pike & Lustig, LLP, our business law attorneys can help you with business formation and through any other legal issues that might arise. If you have any questions about business formation, please do not hesitate to reach out to our team today. We proudly represent businesses throughout Florida, including in Wellington, Boca Raton, and Coral Springs.