You start a business, and you need to know, what is the right business entity for me? Do I even need business entity? Is a business entity really worth the cost?
The Law offices of Marc J. Miles can help you make that decision, which is not an easy one, and requires thought on behalf of the client.
There are Potentially Federal Tax concerns, State Tax Concerns, Liability Issues, Ownership Issues, Asset Protection Issues, and even in what jurisdiction do you form it in, they all present different levels of concern. Trying to do this on your own can be overwhelming, and making the wrong decision could cost you more than you ever realized was possible.
Come to the Law offices of Marc J. Miles P.A. And let them explain the benefits and help you choose the most optimal business entity.
Some of the business entity options are:
An entity created under State Law. Has Shareholders who own shares in the company. Basic rule is Majority Rules. Has it’s own EIN, has its own Bank Account, can enter in to transactions as its own capacity. Pays tax on it’s profit, and then pays out money to shareholders as a dividend, which is also taxed at the individual level. This is commonly referred to as “Double Taxation”.
This is an election that can be made by a Corporation for Tax Purposes Only. An “S” Corporation is not a separate entity. With an “S” Corporation there are some limits on shareholders and distributions, in exchange for avoiding a tax at a corporate level. However please make sure that you talk with your CPA about using a “S” Corporation, as there are some other related potential issues.
Not a formal entity at the State Level, but is two or more people working together , sharing income and expenses. No entity level tax, and no protection of any sort at the State Level.
A specific entity created under State Law. Instead of Shareholders, has Members. Can be a single Member, or a Multi Member. Can have Managers. Initially will be disregarded for Federal Tax Purposes if only one member, will be treated as a pass-through partnership if 2 or more members by default. Can make elections to be treated as a corporation, and even an “S” corporation.
Not recognized in the State of Florida.