What Type of Corporation Works for Small Businesses?

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What Type of Corporation Works for Small Businesses?

Small businesses can also file for incorporation. This will allow the business to operate as its own legal entity, and may also provide various protections for business owners and shareholders. There is no set formula for choosing a form of corporation for small businesses. You will need to consider all the needs of the business in order to ensure that the right type of corporation is being selected.

What Are Some Common Types of Corporations?

Some common corporation forms used by small businesses may include:

What is a Limited Liability Company?

Many corporations choose to file as a limited liability company (LLC). This is a business structure that is similar to a corporation, but is often less difficult to register. For instance, LLC’s are often associated with similar liability protections as a corporation. They may also allow for very specific tax-related incentives.

You may wish to hire a lawyer if you believe that your company might benefit by filing as an LLC rather than a specific type of corporation. Many small businesses also file as close corporations rather than LLC’s, as close corporation formalities are not as complex as those for other corporate forms.

Do I Need a Lawyer for Assistance with Small Business Issues?

Choosing to incorporate your small business is a major decision. You may need to hire a lawyer if you need assistance with the filing, reviewing, and submission of corporate documents with the state. Your attorney can provide you with valuable legal advice on the various types of corporations available in your state. Also, your lawyer can represent you in court in the event that a legal dispute arises during the incorporation process.

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Last Modified: 03-01-2017 04:18 PM PST

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