To help protect your assets, you should give serious thought to the proper legal entity in which to hold and operate your business. The two major types of business entities that offer you limited liability protection are a corporation and a limited liability company (or LLC for short).
The advantages of a limited liability corporation (as some refer to it, though the actual name is
limited liability company
) over a sole proprietorship are substantial. A sole proprietor who is sued in his business dealings is sued personally. One who operates his business as a limited liability company has the protection of the limited liability of the LLC itself. In that case, the LLC may be sued but the individual owner or owners will not normally have personal liability for the actions of the LLC.
offers the same liability protection to the owners as a LLC. Whether it is more advantageous to form your new company as a corporation or as a LLC is often times a question to be answered by your business accountant. Your accountant may have specific tax considerations that he or she may want you to consider in your decision as to the type of entity to be formed. Regardless of the choice you make, Fruchtman, Wilenchik & Larson, PLLC can assist you in the proper formation of your new business entity. And we can work with your accountant or other tax professional to make certain the decisions you make are the best for you and your business.
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