If you are looking for a business lawyer in Boca Raton, then give Chad J Robinson a call at your earliest convenience. When it comes to your business, you want to be sure everything is done legally and efficiently. This ensures a maximum return on investment for your efforts. When it comes to creating a new business, or business formation, the steps you take can greatly affect your ability to grow later on down the line. For those of you out there who are new to business formation, we have listed the answers to some of the most frequently asked questions about creating a business.
LLC vs Corporation
Unless you are doing private contracting, chances are your business will operate either as an LLC (Limited Liability Company) or a corporation. How a business is run is largely determined by which classification you choose to file under.
LLCs offer corporate liability protections, but instead of operating as a corporation, are taxed either as a sole proprietorship or as a partnership. This gives owners protection from the business’ debts, separating personal and business funds. In an LLC, the owners of the company are referred to as “members”, while the people who operate it on a day to day basis are referred to as “managers”. An LLC can be managed by all of its members, in which case it would be member managed. Or, it can be managed by a group of managers, who may or may not happen to also be members (owners) of the company.
To form an LLC, Articles of Organization must be filed with the Secretary of State by submitting either an oral or written Operating Agreement. While an LLC is typically easier to form than a corporation, there are still legal requirements and certain procedures to follow that can make it tricky. To ensure that your business is setup properly for future growth and maximum return on investment, it is best to call a business lawyer to help with its creation.
Unlike an LLC, a corporation is formed solely for the benefits of its shareholders, or owners. These shareholders elect a Board of Directors every year to make the big decisions for the corporation. Officers are appointed by the Board of Directors to enforce the day to day operations of the company. This is where positions like Chief Executive Officer and Chief Financial Officer come from.
Filing for corporation status is much more intensive than filing for an LLC. It starts with filing Articles of Incorporation to the Secretary of State, but it doesn’t end there. It is important to have a business lawyer in your corner when filing for corporation status, as there are constant ongoing legal requirements to deal with as a corporation.
Are you looking for a business lawyer in Boca Raton to help with business formation? Give Chad J Robinson a call today for more information! We’ll be happy to go over how our services can benefit you. We look forward to hearing from you!