Choosing Your Legal Structure
Have you revisited your legal structure lately? Most business owners start out a a sole proprietorship because it is the easiest entity to operate. However, after putting some thought and consideration into the different options, many change their structure. There are a number of different structures that may be more suitable, including S-corporation, LLC, C-corporation, and partnerships. Just because you were a sole proprietorship when you started, doesn’t mean it is the best option now.
While you are getting your taxes done, take a minute to ask you accountant or tax adviser about your options. The various states offer different kinds of protection for the business owner. You don’t want to end up losing all of your assets because of a bad business decision. Talk to your attorney. What type of legal structure are you? When was the last time you did a legal “Check-up”?
Brian R. Fons, Attorney and President, Corporate Creations Chicago LLC, since 1997. Brian.Fons@corpcreations.co