How Does An Attorney Help You Plan Your Business?
In this article you will learn about:
- The points to address with your attorney when starting a business.
- What type of entity works for your business model.
- Proactive measures you can take to protect yourself from some of the most common issues that arise for any
- The best time to hire an attorney is as soon as you decide what your intended business is going to do.
This means that the best point to hire an attorney is prior to deciding what type of entity you want to have, who’s going to have ownership, and even before you’ve chosen a name for the business.
Important Discussions To Have With Attorneys When You Want To Form A Business
Attorneys can discuss the types of taxation you can expect moving forward in the different entity forms. You can form a business under more than a dozen different types of entities. Attorneys will guide their clients on which type of taxation each of the entities falls under from the federal level and what type of taxation they should choose based on their future growth plans.
Important matters to discuss with attorneys at the beginning are what you can expect from the tax perspective. They will also guide you on how to minimize your personal liabilities and maximize the protection of your personal assets from business operations.
Entity Options When Forming A Business And What Business Model Will Work For You
There are over a dozen different entity options to choose from when forming a business. Some of them include:
- An LLC (limited liability company)
- A C corporation
- An S Corporation
- A limited partnership
- A partnership
- And more…
To determine what business model works best in your situation, it’s best to talk to your attorney. There are different considerations and even different limitations in some of the entities.
Some of the entities are restricted in who can apply to use them. Each of them has a default federal taxation and that can be altered in certain situations. These are the conversations that you should have with your lawyer.
Tax Basics To Be Aware Of When Starting A Business
Some of the basics to be aware of include how your business structure will affect:
- Your sales,
- Your employer-based taxes,
- Your personal income taxes,
- Your tax obligation at a state level,
- Whether or not you will need to file for a reemployment tax number,
- And more…
You should always be aware of the income tax implications at both estate and the federal level, the personal level, and a business level.
The Proactive Measures You Should Have In Place To Protect From Potential Litigation
One of the important things to have in place is the right entity structure and the right asset protection from the outset. Asset protection is what our firm helps our clients to create. Asset protection is not a one-size-fits-all answer. It’s a multi-step process in creating the walls of protection. Those walls look different depending on the type of business that exists and what type of business you’re operating.
Some of the steps are selecting the right entity, creating proper structures and separations between your personal life and your business life. That includes having a separate tax ID for your business and it includes having a separate bank account, and operating the business with structural integrity.
How Debra Faulkner Law Firm’s Background In Tax Law Assists Clients In Forming The Right Type Of Business That Will Limit Their Tax Exposure
Both attorneys at our firm attended law school for an extra year in order to gain specialized knowledge on tax law. This means that we have the ability to expertly advise our clients on estate taxes, gift taxes, and the types of taxation that will affect your business.
Over the years, we have helped hundreds of clients choose the type of business entity that will maximize their deductions and minimize their tax exposure.
For more information about Business Law in Florida, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (727) 939-4900 today.