Business Law: Business Entities
New companies must take steps to comply with the law even before opening their doors for the first time. Business law attorneys form new business entities on behalf of their clients by filing the necessary documents with the state.
Businesses can be formed as:
- Sole Proprietorships
- C Corporations
- S Corporations
- General Partnerships
- Limited Partnerships
- Limited Liability Companies (LLCs).
While the selection of the appropriate business entity will depend on numerous factors, the primary purpose of most entities is to shield owners from individual liability. Operating a business that is not set up to provide limited liability means that the owners are putting all of their personal assets within reach of the business’s creditors. By working with a business law attorney at the inception of the business, this situation can easily be avoided.