Tampa Business Organization & Structuring Attorney

If you are thinking about starting a business and embarking on an entrepreneurial journey, you need sound legal advice. It is critical to start your company with a sound legal foundation that will protect your interests, ensure you comply with regulations, and set you up for long-term success. One of the most important elements of a strong foundation pertains to how you structure your business. Below, our Tampa business organization and structuring attorney explains more about the different types of business structures.

Sole Proprietorship

Sole proprietorships are the most common type of business structure. They are also the simplest. Sole proprietorships are owned and operated by one person. There is no distinction between the sole proprietor and the business. While the business owner has complete control over operations, they also assume all liabilities and responsibilities of the company. This means that if the business is the target of a lawsuit, the owner’s personal assets could be at risk.

Partnerships

A partnership is simply a business structure established by two or more people who agree to share the business’ profits, losses, and responsibilities. A partnership agreement outlines the conditions and terms of the partnership, including the contributions, roles, and decision-making authority of each partner.

There are several different types of partnerships. The broadest of them all is a general partnership. Partners in a general partnership equally share responsibility and liability for the debts and legal obligations of the business.

A limited liability partnership provides limited liability protection to every partner. However, there is much more flexibility in management and operations. A limited partnership has both general partners and limited partners. The general partners assume unlimited liability, while limited partners assume less liability but also have less control over how the business is operated.

Limited liability companies (LLCs)

Limited liability companies combine the tax benefits and operational flexibility of a partnership with the liability protection of a corporation. The owners of an LLC are known as the members and they are all provided with limited liability protection. This protects the assets of all partners from legal liabilities and the debts of the business.

Corporations

Corporations are legal entities that exist separately from the owners, who are the shareholders. Corporations are governed by a board of directors who oversee the operations of the business and make important decisions on behalf of the shareholders. A corporation is formed when the pertinent documents are filed with the state.

Our Business Organization and Structuring Attorney in Tampa Can Help You Start Your Company

Choosing how you will organize your business is a very important decision, but it is not an easy one. All of the different structures have their own advantages and drawbacks, and it can be difficult to choose. At BBDG Law, our Tampa business organization and structuring attorney can review the different options with you and advise on which one may be best for your situation. Call us today at (813) 221-3759 or fill out our online form to request a consultation and to learn more about how we can help.