Legal Entity Formation
Choosing the correct legal entity formation will save you from headaches and stress, and even more importantly it will provide you financial savings. Best practice is working with your business accountant and business attorney to make certain that your business structure provides the best protection. There are several different aspects to take into consideration, such as tax advantages, administration of the entity, liability, ownership restrictions, outside capital, need for outside transfers/etc. For example, are you aware of the following?
- For tax purposes, your corporation is automatically taxed as a C-Corporation unless you file for and obtain S-Corp status from the Internal Revenue Service.
- You must file the S-Corp election within a specific limited period of time after forming your Corporation.
- An LLC can be taxed in multiple different ways, including being taxed as an S-Corp.
- A Corporation requires minutes of meetings, even for a corporation that only has one shareholder (owner).
- An S-Corporation has restrictions on eligible shareholders, the number of shareholders, and does not allow for more than one class of stock for financial rights.
Spangler and de Stefano, PLLP represents businesses (for-profit and non-profit) regarding formation of a legal entity, including corporations (C-Corps and S-Corps), Limited Liability Companies (LLC), partnerships, joint ventures, cooperatives, etc.
The material contained herein is for informational purposes only, and is not intended to create or constitute an attorney-client relationship between Spangler and de Stefano, PLLP and the reader. The information contained herein is not offered as legal advice and should not be construed as legal advice.