THE BUSINESS OF CHOOSING THE RIGHT ENTITY FOR YOUR BUSINESS

Starting a business in Florida is an exciting time, but there is much more involved than simply choosing a name and starting to sell products or services. One of the very first and most important steps is deciding which business entity is right for your company based on the nature of your business.

Business entity selection is important as it can affect issues such as taxes, your estate plan, your personal liability in your business and the continuity of your company. One of the most popular choices for businesses is a limited liability company, also known as an LLC. Before you move forward, it may help to know your options regarding the structure and operations of your business.

Why choose an LLC?

The type of business entity you select depends on multiple factors, such as your personal assets, the nature of the business you are forming and more. Many people choose an LLC for one of the two following reasons:

They have a significant amount of personal assets that they wish to shield from business-related liabilities.

The business will involve participation in dangerous activities, which may lead to a higher chance of lawsuits or accumulating a significant amount of debt.

Deciding upon an LLC is only the first step in your business formation process. Next, you will have to walk through the appropriate steps to ensure that your company meets all legal requirements and you have fully protected both your financial and legal interests.

The right steps to forming an LLC

When forming an LLC, it is important to walk through the appropriate steps to complete the process. The steps you will have to complete include:

You will need to choose a business name.

You must complete the articles of organization and all necessary paperwork.

You will draft an operating agreement, outlining how you will run your company.

You may have to publish a notice to make your business official.

Starting your business off on the right foot is a key component to your success in the future. From avoiding legal problems to tax obligations, the choice of business entity will have reverberations for the entire lifespan of your business.

If you are unsure of where to begin or believe that an LLC could be the right choice for you, you would be wise to seek a full understanding of all of the options available to you. This will allow you to make decisions that are truly in the best interests of your business and personal finances.

Please reach out to us at 141 5th Street NW, Suite 300, Winter Haven, Florida 33881 at 863.294.1114.

Established in 1991, Rignanese & Associates is available to work with clients on their legal needs.

On behalf of J. Kelly Kennedy, Attorney/CPA, PLLC, which has been acquired by Rignanese & Associates, PLLC.