All partnerships should have a written partnership agreement clearly defining the partnership terms. Ansbacher Law has more than 35 years of experience in helping new and existing Florida businesses of all sizes form partnerships. Contact our Florida business formation attorneys today to schedule your initial consultation with our firm.
Business Formation Attorneys Near Jacksonville, Florida | Types of Businesses
Some of the most common types of businesses are as follows:
- Sole Proprietorship: This business formation involves a 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.
Our Florida business formation attorneys will help advise you on which of the following types of business structures would work in your best legal and financial interest, including:
Corporations
Incorporating a business creates a distinct and separate legal entity from the individual forming the corporation. This separation may protect business owners from liability that the business incurs.
One of the benefits of a corporation is the ability to raise money from investors by selling shares of the corporation to investors. A corporation is usually run by a board of directors and officers. The two most common types of corporations are:
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.
An experienced business lawyer at Ansbacher Law can assist you in forming your corporation. We will make sure all of the corporate documents necessary to form a corporation are prepared correctly and kept up to date in order to protect shareholders from personal liability.
Limited Liability Companies
In a Limited Liability Company (LLC), owners report business profits or losses on their personal income tax returns. The LLC itself is not a separate taxable entity. LLC owners are protected from personal liability for business debts and claims (limited liability). Only the assets of the business itself are at risk if the business owes money or faces a lawsuit.
You do not have to hire a lawyer to set up an LLC, but it is a good idea to have a Florida business lawyer read over paperwork to ensure that all forms and documents are completed accurately and in your best interest. At the same cost for setting up an LLC through any other registered agent, Ansbacher Law will set up your LLC and ensure the paperwork is filled out properly and that your best interests are preserved.
Partnerships
A partnership is formed when two or more people intend to do business together for profit. Ansbacher Law has more than 30 years of experience in helping its clients draft partnership agreements that will protect our client’s best interests throughout the duration of their business and in the event of the business’s dissolution.
Contact Our Business Formation Attorneys
Contact us today for additional information or to arrange a consultation with an Ansbacher Law attorney.
