For every business, important legal and tax consequences hinge on the “choice of entity” question. You can operate a business through a corporation, partnership, limited liability company (LLC) or a proprietorship. In the last case, there is no legal entity and you simply conduct business by yourself. With a unique mix of tax issues and liability, one size does not fit all.
Limit Your Liability
Without a legal entity, you are operating as a proprietorship, the oldest form of business. A proprietorship can only have one owner, although husband and wife are considered one for this purpose. To limit your liability, an entity should conduct the business, not you personally. You want the entity’s assets at risk, not your house or college fund.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
