Perhaps you have recently purchased some investment property. Or maybe you have been running a side business for years. If you have ever wondered whether it would be worth it to incorporate your business by creating a LLC, limited partnership, or S-corporation, read on!
LLCs, Limited Partnerships and S-Corporations offer liability protection. This means that if your company is ever sued or has delinquent bills to pay, the only assets your creditors may collect are those owned by the business. Personal assets, like your home and personal bank account, are kept out of the hands of business creditors.
Tax Savings. The 2018 tax bill offers tax advantages to many pass-through business entities. For example, you may be able to limit self-employment tax and, in some circumstances, take up to a 20% deduction on your business income.
Protection from worst case scenarios.
Have you thought about what happens to your business if you were to become disabled, die, get divorced, or declare bankruptcy? The attorneys at Rochford & Langins will walk you through buy/sell provisions to provide a succession plan for when these “triggering events” occur. Rest assured that no matter what happens, your business will continue to operate smoothly and stay out of the hands of ex-spouses and creditors.
It is critical to formalize the understandings between members within your company. For example, your documents should designate which members of the company are authorized to sign on behalf of the business. You should also plan for what happens if a member wants to sell his interest—must all other members consent to such a sale? These are just a few examples your business should discuss and settle before they become an issue.
Which entity is right for me?
There are many statutory and tax differences between an LLC, Limited Partnership and S-Corporation. The attorneys at Rochford & Langins are here to walk you through the incorporation process so that you enjoy all of the benefits a LLC, limited partnership, or S-corporation has to offer. Contact us today to discuss which type of business entity makes the most sense for your business!