If you are thinking about starting a company, you will want to find out about the benefits and liabilities of each form of ownership. Choosing the right type of entity not only affects a business’s financial future but also has different tax consequences.

We help our clients set up various types of businesses and joint ventures, including:

• Limited Liability Companies: With this structure, managers and managing members are protected from personal liability and claims of creditors. Under Florida law, an LLC with multiple members is generally treated as a partnership for income tax purposes. If it has only a single member, it is regarded as a separate entity for tax purposes. Thus, LLCs are not subject to Florida’s corporate income tax rules.
• Corporations: A corporation is defined as an entity formed to act as a single person under the law. Thus, it is generally an association of employers and employees organized in a particular company. A key benefit of a corporation is that the owners and shareholders are not personally liable for the debt of the entity.
• Partnerships: Under state law, a partnership is defined as an association of two or more persons who are co-owners of a business for profit. General partnerships do not have to register with the state or get a business license. Each partner is independently liable for any business-related activity that he or she engages in. These entities are often appealing due to the ease and informal nature of their formation and operation.