Business formation is an important and necessary step in starting a business. Whether you are a non-profit, a small business, or a partnership, you should establish a business entity as soon as you can. Each business entity has a particular structure, it has specific rules and regulations, and it comes with legal responsibilities, benefits, and risks.
The types of business formation you can establish include:
- Sole Proprietorship
- Joint Venture
- Limited Liability Company (LLC)
- Limited Liability Partnership (LLP)
Business Formation: What are the Benefits?
Forming a business entity is important because it can protect you from liability and it may offer tax benefits. The benefits and risks of the different entities is quite involved, please call us for full details. Listed below are examples of business entity benefits.
- Establishing a sole proprietorship allows your business to have more credibility because your business is a legal entity and not a fly-by-night operation.
- Establishing an LLC offers you limited liability protection: here, business assets are separate from personal assets so if your company goes bankrupt or is sued, only business assets and finances are affected. Your personal finances are independent and not affected.
- If you choose to form a corporation you can sell company shares for the purpose of generating more money which you can use to expand the business.
There are many types of business formations and each has its own set of intricacies. Simple Legal Utah can help you file forms to establish your business formation. Please call us to discuss which business entity is best for your establishment. We offer free, 30-minute consultation: (801) 362 3786. You can also send us email using our online form.