LEGAL ADVICE WITH A BUSINESS OWNER MINDSET
Business Formation in York, Pa
If you are starting a business, then the decision that you make during the formation process will have long lasting effects. We believe that the right corporate structure for a start-up or expanding a business is one of the critical factors leading to success.
The law firm of James Robert Sanders Esquire, LLC provides innovative and knowledgeable legal support and representation for new and growing businesses throughout south central, PA. We take the time to explain the options that may be best for your business plan, and we will help you understand all the implications of each option.
We have a no pressure policy. We will never push you into a decision about what structure is best for your business. We only provide as much information as possible, as well as make recommendations. However, the decision is completely up to you!
Choosing a Business Entity
The formation of a business entity provides a business owner with protection over his or her own personal property. It also turns your idea into a credible, legitimate business. We want to make sure you are fully aware of all your options.
Many potential business owners never venture into business because the formation process sounds expensive and intimidating. You are probably wondering what entity is right for you. You probably have no idea what benefits each entity has over another. Don’t get overwhelmed. In a short amount of time, we’ll help point you in the right direction so you can get back to business
A few business entities include:
The most simplistic business structure is the sole proprietorship. Unlike the corporation, the sole proprietorship is not a legal entity. The person who owns the business is personally responsible for the profits, expenses and the debts. There is no legal protection of personal assets in this structure.
General Partnerships (GP)
A GP involves two or more individuals who share in the profits and losses of the business. Typically, when one of the partners leaves or passes on, the partnership dissolves. All profits and losses of the entity are split equally amongst the partners. Legal liabilities are also shared as well.
Limited Partnerships (LP)
An LP is a special kind of partnership, in which there are two classes of partners. One class is that of general partners. The general partners run the business and share in any profits or losses the same as in a regular partnership. The other class is that of limited partners. Limited partners contribute money, but are not allowed a say in how the business is operated. They might also be called silent partners. Usually, limited partners are only liable for losses up to the amount of money they contributed to the partnership.
Limited Liability Partnership (LLP)
An LLP operates much like a limited partnership, but gives each partner protection from personal liability up to their investment in the organization. One partner is not responsible for another partner’s debts, obligations, or liabilities resulting from negligence, malpractice or misconduct. Professional organizations (such as accounting and law firms) often form LLPs because it limits malpractice claims against uninvolved partners.
LLC (limited liability company)
An LLC is one of the least complex business structures because of its simplicity. Profits & losses are passed through proportionally to an LLCs’ members for tax purposes, while at the same time affording legal protection for their personal assets.
An S corporation is a very special type of corporation that is created through an IRS tax election. What makes an S Corp different than a traditional corporation is that profits and losses pass through proportionally to the shareholders’ tax returns. Like an LLC, an S Corporation affords legal protection for personal assets if it is setup and operated properly.
A traditional corporation is an independent legal entity. It is separate from the people who own, control and make decisions in the corporation. Essentially, the corporation and tax laws view the corporation as a legal person who may enter contracts, take on debt etc. The corporation pays its own taxes and is solely responsible for any liabilities. The only time that shareholders pay taxes is when the business issues dividends or they sell their shares for a gain.
Our services include:
James Robert Sanders, Esquire
James Robert Sanders, Esquire
The Law Office of James Robert Sanders Esquire, LLC is involved in all major areas of business law. We offer business litigation, business formations and more.
3110 East Market Street
York, Pennsylvania 17402
8a-6:30p M-F, Closed S-S