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Business Formation

So you have been bitten by the entrepreneurial spirit and are thinking about starting a new business, or you are looking to expand your business into new areas using a new business entity. Now the question becomes: What type of business entity should I use as a vehicle for engaging in this new business venture?

Options And Advice From Attorneys Who Know What It Takes To Run A Successful Business

There are certainly lots of entities for you to choose from, and you need to consider the best entity vehicle for your particular business needs. Specifically, you need to consider the ownership structure, the capital structure, the management structure, the tax structure, the liability of owners and managers, and the operational structure for the day to day business activities. Understanding and considering these components will help ensure that the vehicle chosen will be the most efficient. Please refer to our business entities web page for more information on the various types of business entities you can choose from.

For example, for tax and operational reasons most real estate businesses are owned by an entity that is taxed like a partnership. Most personal service businesses are owned by an entity that is taxed as an S corporation. This would include a real estate management business.

Please be sure to consider the tax consequences associated with the business entity that you are planning to use. For example, regular corporations are subject to double taxation (taxed on their income, and the shareholders are taxed on the dividends), and are subject to Florida income taxes (5.5% tax rate). Choosing an S corporation as the business vehicle, in this case, can avoid the double taxation and Florida corporate income taxes.

Also consider how the business interests are going to be owned. This can affect your estate and asset protection planning. If you have partners, you should seriously consider having an agreement covering death, divorce, buy/sell, employment, confidentiality, and similar matters.

We Are A Small, Family Firm Bringing A Personal Touch To Building Your Business

Williams & Associates, P.A., is a boutique tax law firm concentrating in tax, business and estate planning matters. Our lawyers, including a former Internal Revenue Agent, can help you choose what type of business entity to use, and help you get it established so you can then concentrate on getting the business going. Please contact us at 850-270-0695 to arrange an initial consultation where we can discuss how we might be able to help.