BUSINESS LAW TIP: Do you know the advantages and disadvantages of each business structure? A sole proprietorship or partnership are less expensive and easier to form than a limited liability company (LLC) or a corporation. But in a sole proprietorship and partnership, the owner is liable for the business debts and obligations – there is no limited liability protection. The owner’s personal assets are at risk. In LLCs and corporations, the owners’ personal assets are protected by the “corporate shield”. LLCs are also more flexible than corporations, and are currently the preferred business structure. C Corps are taxed differently than S Corps (which may take the S election to have “pass through” taxation). C Corps may be subjected to “double taxation” on the corporate income and also on the individual personal income level if corporate dividends are issued by the corp. It is best to work with an experienced attorney to form your business, counsel your business, and to draft and review your business contracts and other legal documents! #business #businesslaw #businesstip #businesslawtip #businesslawyer #corporatelawyer #lawfirm #lawyer #attorney #startup #entrepreneur #corp #llc #law #legaltip #legal #contract #contracts #contractlaw

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