Business Attorneys With Advice on Maryland Business Entities
Choosing the right business entity can be critical to the success of your business. At Thienel Law Firm, LLC in Columbia, Maryland, our experienced business planning attorneys help you decide. We are focused on listening to our clients' needs and responding with creative and ethical legal solutions.
Which Business Entity Is Right for My Needs?
There are many factors to keep in mind when choosing the business entity that best meets your needs. These include the plans for growth, tax consequences and operating requirements of the business.
While most people consider dividing the profits from their business, it is equally as important — if not more so — to consider dividing any potential debt. Business owners and entrepreneurs should consider the importance of protecting themselves from personal liability for business losses before they begin their business endeavor.
When counseling on business entity formation, business attorneys at Thienel Law Firm, LLC make sure that clients understand the differences between different entities:
- Sole proprietorship: This is the simplest form of business entity. No filing is required, but the sole proprietor is not protected from liability for things that may go wrong.
- Joint ventures and limited liability partnerships (LLPs): When partners undertake a joint venture, they find that LLPs offer more legal protections than general partnerships. LLPs are a form of partnership where individual partners are protected from some liability for their partners' actions.
- Limited liability companies (LLCs): The LLC is a very popular form of business entity. Legal requirements are often less stringent for LLCs than for corporations.
- C-corporations: Forming a C-corporation requires filing articles of incorporation with the state of Maryland. C-corporations are unique in that they are taxed at the entity level.
- S-corporations: Like a C-corporation, an S-corporation is formed by filing articles of incorporation. However, the income or loss is passed directly to the shareholders without being taxed.
Consult With a Business Attorney Regarding Your Needs
When planning a business, talk to us about which business entity best meets your needs. Contact Thienel Law Firm, LLC by calling 443-535-9715 to schedule a consultation.