Legal Guidance When You Are Starting A New Business
The best corporate structure for your business depends primarily on three basic things: your business goals, the number of owners and your aversion to liability risk. These will determine the formalities your business is required to follow and the way you will be taxed. The best way to maximize profits while protecting your interests is to form your business according to these ideas.
The Law Office of Rosario Mario F. Rizzo in Concord provides innovative business formation guidance to clients in Boston and across Massachusetts. After over 29 years of practice in business law, I have developed cost-effective, efficient strategies for all types of businesses. My comprehensive business and commercial law services include helping you choose the right structure for your organization.
How Do I Choose The Right Business Structure?
Deciding whether your business should be a sole proprietorship, limited liability corporation or any other legal structure often comes down to allocating risk. How do you wish to approach issues of risk and profit-sharing? Are you comfortable with being personally liable? How do you wish to be taxed?
My common sense approach to business law breaks down these questions, so you can focus on what is best for your business. I have helped Massachusetts business owners form LLCs, corporations, both C and subchapter S, partnerships and sole proprietorships.
Risks And Rewards Of Common Business Formations
The deciding factor for many business owners is often personal exposure to liability. Every type of business organization has its own tax treatment, liabilities and obligations. Although the paperwork for organizing a business can be completed online, consulting with an attorney gives you the benefit of understanding how each of these organizations works. Common formations include:
Sole proprietorship: A single person operates the business and is personally liable for all business obligations but avoids registration and reporting requirements.
Limited liability companies (LLC): Owners are not personally liable for company debts and other liabilities.
Corporations: Owner is protected from liability, but there is the potential to be double taxed if not a Subchapter S corporation.
By consulting with me about your business goals, you can better determine which type of organization will be most profitable and incur the least amount of risk for your business.