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What Entity Does My Business Need?

business entity for legal structureAll business managers are concerned about the legal structure of their operation. Even those who own a single sole-proprietorship business consider the best legal structure when they are looking at enlarging their clientele. Businesses that are owned by multiple parties probably have more concerns because of certain aspects of the operation such as tax assignment and other financial liabilities that could require insurance protection. Licenses and other governmental requirements can be important issues as well, all of which are part of the overall considerations when deciding on the property entity structure. The best method of ensuring your business is designed with maximum optimization and protection is by consulting with experienced Indianapolis business attorneys like McClure McClure & Davis who can offer advice from a legal perspective regarding entity structure.

 

Basic Considerations

 

The first evaluation criteria for the right business entity structure is tax liability. There are multiple taxes that could apply to any particular industry based on a variety of factors. Not only are federal income taxes a serious issue, but local taxes and state income taxes can matter as well. Sole proprietorship owners may actually want to consider being established as an S corporation in some instances because it sets the business up as a separate entity from the owner’s personal liabilities. The Indianapolis business attorneys at McClure McClure & Davis can be of great assistance in this decision.

 

Partnerships

 

Many businesses that are owned or operated by multiple parties may want to consider establishing the company as a limited liability company, or LLC. This is also called a “pass through” business with respect to tax liability and income assignment and serves well for certain business. Partnership businesses that do not spell out in certain terms what the responsibilities and ownership levels actually entail could have a major problem when a calamity arises and using the LLC entity structure can help prevent this potential issue.

 

 

Any business owner in Indiana who is considering a change in their company structure or is contemplating a new startup should call Indianapolis business attorneys McClure McClure & Davis for professional advice and representation.

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