Incorporate or form a limited-liability company?
Admittedly, that is not the question that most people in Ohio and across the country are internally posing as we ease into January, but it certainly is a germane query for a select breed of individuals.
Namely, those are business owners of sole proprietorships, as well as principals in general partnerships. As we move into 2017, many of those individuals are logically contemplating whether it is now logical for the businesses they own to adopt a different structure.
The reasons for doing so are strong and many, notes one recent business article, with an eye on getting started early in the year being properly focused.
“January is the most logical start date for a new LLC or corporation,” states Accounting Today, “since it eases the paperwork burden.” Specifically, adopting a new legal structure at year’s onset will enable business owners to avoid the hassle of reporting taxes as two different types of businesses.
Aside from that, though, there is much upside in changing business form for many additional reasons, and regardless of whether a change is made early in the year.
A law firm commanding a deep well of experience assisting clients with business needs, including formation-related matters, can address the merits — and, yes, the downsides that might exist with some choices — for business clients contemplating a new legal structure.
Limited liability is often — and rightly — mentioned as one reason why incorporating a business can be attractive. An LLC can achieve the same objective. Additionally, those forms can be more attractive than other business types for garnering tax advantages, raising capital, preventing disputes when it comes to profit division, building credit and for many other reasons.
Again, close consultation with a proven legal team can help educate a client and promote sound strategies for growing and protecting a business.