One of the most critical aspects of starting a business is the selection of a proper formation that will protect the owners and accommodate growth. At Kisner Law Firm, LLC, we work with business owners and investors to select an appropriate business formation for the company. Our attorneys understand our clients' short- and long-term goals, guiding them to the answers and solutions that will best serve the company.
Most commonly, companies choose between a limited liability company (LLC) and incorporation (Inc).
Limited Liability Company (LLC)
An LLC protects the owner from personal liability. Many times, this is chosen by small businesses or those offering personal services, particularly if there is only one owner. If there is any risk you could be sued through the business, this may be a prudent option.
An LLC is less expensive and requires fewer formalities to create. It allows owners to create a professional presence while protecting their assets. By professionalizing the business, the owner often enjoys additional tax benefits and shelters. Owners may also take dividends from excess profits under this structure. Under an LLC, there is no limit to the number of owners and private investors for the company.
While there are far fewer formalities required for an LLC, there are details that must be considered to protect the interests of all involved. Our attorneys provide clear and customized guidance and solutions to address these issues. We assist in the creation of operating agreements and other contracts needed to protect owners and investors.
Similar to an LLC, incorporation protects the personal assets of owners from legal liability. By becoming a corporation, many companies experience significant tax benefits. In addition, incorporation allows the company to attract potential outside investors by issuing shares and stock to raise capital. This option is often recommended to companies seeking to grow significantly or franchise their operations.
Should you choose to incorporate, we will provide the guidance and tools you need to complete the process in an efficient and cost-effective manner.
To discuss your company's options in business formation or incorporation, please contact our Pittsburgh, Pennsylvania, law firm today at 412-208-4263.