The Pathway to Success: Choosing the Right Business Entity

The Sunshine State offers a welcoming business climate for entrepreneurs. According to a study published in 2023 by researchers at The Digital Project Manager, Florida leads the nation in new business formation. While starting a business venture is exhilarating, it can also be overwhelming due to business demands and legal challenges. At McGee Law, PLLC, we cater to all business industries with a comprehensive suite of services designed to launch your company on a course for success.

The Role of a Business Structure

Establishing a solid foundation for a business’s sustainability and growth starts with selecting the appropriate entity. Choosing the right entity can reduce exposure to personal liabilities, minimize your tax burden, and ensure compliance with state and local regulations. As each business entity, also known as a business structure, has advantages and disadvantages, it is in your best interest to consult an experienced attorney offering legal services for business owners and entrepreneurs. 

Your Trusted Advisors for Business Formation Services in Flagler County, Florida

At McGee Law, PLLC, our attorney and legal team are well-versed in business law and can help your business grow and prosper. We provide counsel and support throughout the business formation process and for all your ongoing legal matters. Business entities are created under state law, and there are many options. We are here to evaluate your needs and help you select the business structure that will most effectively achieve your goals.

Common Business Structures are:

  • Sole Proprietorships: When a single member owns an unincorporated business, there is no legal distinction between the business and the owner. The business’s profits and losses are declared on the owner’s income tax return, and the owner is personally responsible for all debts and liabilities the company incurs. This is the simplest business structure available and a popular choice as a first step in building a small business.
  • Partnerships: Under this structure, there are two or more owners. Like a sole proprietorship, profits and losses are claimed on the owners’ tax returns. Any debts and liabilities against the company affect the owners personally. Depending on your goals and circumstances, there are several types of Florida partnerships.
  • Limited Liability Company: This business entity also offers pass-through taxation, meaning that profits and losses are reported on the owner’s (members) personal income tax return. It offers flexibility in the structure and management of a business, including various types of profit distribution. It has few formalities and provides personal asset protection for its members. 
  • Corporations: A corporation is a separate legal entity from those that own, control, and manage it. Therefore, it offers total protection from personal liability. A corporation has formalities such as a board of directors and shareholders, annual meetings, accurate record keeping, and formal documents, including articles of incorporation and bylaws. There are several options when choosing the type of corporation in Florida that is right for your business. While there are many advantages to forming a corporation, one disadvantage is double taxation, as the company’s profits are taxed, and the dividends to shareholders are taxed again.

Your Partner in Starting a Business: From Formation to Beyond

At McGee Law, PLLC, we know that smart legal decisions create successful outcomes. We build strong relationships with our clients so that we understand your business goals and vision. We aim to provide sound legal advice, strategies for liability protection, and compliance with state and federal regulations.

If you would like to learn more about our comprehensive services for your start-up or ongoing business, contact us at (386) 320-7300 to schedule a FREE PHONE CONSULTATION with our experienced attorney. Our offices are located in Palm Coast, Florida. We can turn your entrepreneurial vision into a thriving company.

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