Starting Your Business On The Right Track
Forming a business and pursuing your goals on your own is both exciting and complicated. Coming up with an idea for your business is a great place to start, but once you have validated the market and decided that your idea is worth pursuing, you will quickly find that there are many more steps that you will need to take before you can truly get moving with your plans.
Each of the steps required in order to determine the type of business you are forming, the information required in order to form it properly and how to move forward with your work once you have finalized the formation can be confusing to someone who has not been involved in this process before and is daunting even for people who have been through these steps with previous companies. That is why most entrepreneurs advise that someone starting a new company work with a business law attorney right from the start. The team at The JC Law Group, LLC, has an abundance of experience with business law and will be a significant asset for you while you are getting the foundation laid for your exciting new venture.
Choosing A Structure That Works For You
The first thing that you will need to decide is how you will structure your business. The following are the different options from which you will need to choose.
- Sole proprietorship: A sole proprietorship is the most simple option to choose from when structuring a company. It is an unincorporated company that is run by one person (you). The owner is entitled to all profits and is responsible for all debts.
- Partnership: A partnership is simply when two or more people collectively own a business. With partners, there are some complications such as equity split and other details that must be agreed upon.
- Limited partnership (LP): A limited partnership means that there is one partner with unlimited liability and likely the majority of control over the company while all other partners have limited liability and limited control.
- Limited liability partnership (LLP): A limited liability partnership means that the limited liability is distributed among all partners, and therefore it is likely that the control is distributed in a similar fashion.
- Limited liability company (LLC): An LLC is a great option for owners who are looking to limit their liability as it pertains to personal assets. This means that the owners can pass profits through the company to themselves without having to pay corporate taxes individually. While this structure is preferable in many high-risk ventures, it is important to understand the risks and requirements before choosing this structure.
- Corporation: A corporation is an entity that is entirely separate from its owners and employees, meaning that the corporation itself is legally responsible for all profits, losses and risks. This is an option that provides the most legal protection for the owners because of how it is considered to be its own entity entirely separate from the individuals who are running the business, but it comes with significantly greater costs.
There are a variety of subcategories of corporations, such as a C Corp, S Corp and B Corp, depending on your specific needs and desires for your business, which we will walk you through during our formation process.
Talk With An Attorney Who Knows The Formation Process
No matter what your needs are during a business formation process, our team has the resources to help. Contact us now online or by telephone at 240-561-9224 for an evaluation and a better understanding of how we can specifically help you, no matter what your issues or questions are regarding business formation in Maryland.