Starting a business is an extremely difficult task – but as any entrepreneur will tell you, it can also be extremely rewarding. If you are to the point where you have a great product or service, a solid business plan, and the drive to make it happen, it’s critical that you choose the right business formation for your needs.
Some of the more common business entities you can choose from are described briefly below. For more information, call our office today to speak with a business lawyer in Lynnwood.
Sole Proprietorship
A sole proprietorship exists when a person engages in business for himself or herself. A sole proprietorship is not a business entity but rather a type of business, as there is no legal distinction between the sole proprietor and the business. For this reason, sole proprietors are responsible for any debts incurred by the business.
Partnerships
Partnerships involve two or more people engaging in business for profit. In a partnership, each partner is jointly and severally liable for the liabilities of the partnership.
Corporations
Corporations are legal entities separate from their owners. They can make a profit, incur liabilities, and pay taxes. They are complicated to form and have substantial and often onerous state reporting requirements, but they offer their owner protection from personal liability.
Limited Liability Companies
Limited liability companies, or LLCs, are business entities that combine the pass-through taxation and flexibility of sole proprietorships and partnerships with the limited liability afforded by corporations. In other words, the members of an LLC are not typically liable for debts incurred by the LLC.
Call Us Today to Schedule a Free Consultation with a Lynnwood Startup Business Attorney
If you are in the process of forming a business or need to take your side project to the next level, you should speak to an attorney as soon as you can. Our lawyers can advise you as to the most appropriate business entity for you. Contact us online or call us at 425.517.3051 to schedule a free case evaluation with a business lawyer in Lynwood.
