Which Structure Is Best For Your Business?
All partnerships should have a written partnership agreement clearly defining the partnership terms. Ansbacher Law has more than 28 years of experience in helping new and existing Florida businesses of all sizes form partnerships. Our Jacksonville business law attorneys will help advise you on which of the following types of business structures would work in your best legal and financial interest, including:
- Limited liability companies
Types of Businesses
- Sole Proprietorship: This business formation involves few legal issues. Under a sole proprietorship, the owner is entirely responsible for the finances and operation of the business. The owner takes on unlimited risk in this type of venture.
- “C” Corporation: An important aspect of a “C” corporation is the fact that it is a separate entity from those who own it. That means that the owners and shareholders assume little to no personal risk in daily business operations. The corporation, as well as the shareholders, pay taxes.
- “S” Corporation: This type of entity is set up in the same manner as the “C” Corporation, with the exception that taxes are paid by the shareholders and not the corporation.
- General Partnership: If you establish this type of business, you and a partner will share all responsibilities, profits, losses, and liabilities. In a general partnership, each individual pays taxes.
- Limited Partnership (LP): With this type of business, one partner is actively involved in business operations. The other partners will usually contribute capital to the venture. These partners have limited liability.
- Limited Liability Partnership (LLP): An LLP protects individual partners from personal liability as it relates to the negligent acts of other partners or those employees that a partner does not have under his or her direct control.
- Limited Liability Limited Partnership (LLLP): An LLLP is a limited partnership in which the general partner is no longer personally liable for the acts of the limited partnership. The general partner of an LLLP is protected by statute from liability for the acts of the limited partnership and does not expose himself to individual liability. Like the LLP mentioned above, every year the LLLP must file an annual report or its status will be revoked. If the annual report is not filed, each general partner is jointly and severally responsible for all liabilities arising after the LLLP status is revoked.
Contact us at 904-737-4600 if you would like help forming your business.