Every business owner needs help you making the decisions about what business entity you need to form to best serve your needs.  LLC’s are the most commonly used business entity because they are flexible in how they are treated for tax purposes.  You can elect to treat an LLC like a corporation for tax purposes or, if more beneficial to you, like a partnership for tax purposes.  If you are a single member LLC, you don’t even have to file a tax return as the IRS will treat a single member LLC as a disregarded entity.  A recent development with LLC’s is the allowance of series LLC’s in Texas.  Series LLC’s allow for multiple entities within one LLC without filing any new forms with the Secretary of State and without paying any additional filing fees to the State.  Each Series can have different owners, management and operating agreements and insulated from liability from each other as if they were separate LLC’s.  Series LLC’s are a great new planning tool to utilize in business, investment, and asset protection situations.

In addition to LLC’s, some situations may call for a Corporation, which can be a C Corporation, or an S Corporation, depending on the desired tax treatment.  If the owner of the corporation desires to let tax losses flow through in the early years of a business, but shift to normal corporate taxation later, electing for Sub S treatment as an S Corporation in the early is a good option.  A C Corporation can be used as a vehicle to hold earnings at a low tax rate where dividends will not result in double taxation to the recipient.

Although not used as much these days, some situation still require partnerships as a business entity.  Partnerships may be in the form of a General Partnership, a Joint Venture, or a Limited Partnership.  In the General Partnership and Joint Venture, all the parties are liable.  In the Limited Partnership, on the General Partner has unlimited liability, but the Limited Partners have no liability beyond their investment in the Limited Partnership.

Whatever Business entity you need, John can help you determine which is best for you and then set it up quickly and specifically for your situation.