When starting or buying a business, people often need to think about how they will set up their legal structure. Is it a sole proprietorship, joint venture, LLC or corporation? For best protection from liability, the latter two are often used. An LLC is less paper intensive than a C or S Corporation. For example, I bought a pizza parlor with a relative at 50/50 ownership. We set up a S corporation (requires a special filing with the IRS and is time sensitive) and listed our ownership, prepared the necessary documentation and state filings. Registering as a merchant, including getting payroll and liability insurance were among the many things we we had to do as new business owners. When thinking about setting up a legal entity, one should speak with and hire an attorney. I have seen new business owners look more at cost savings vs. what services will be provided and the quality of such services when thinking about forming a company. As such,…Read More
