Long Island Business Formation Lawyer

Starting your own business can be exciting and rewarding. Business ownership is, after all, the “American dream”. Starting out in business can be risky, but you can eliminate some of the initial risk by consulting with a Long Island Business formation lawyer prior to venturing into business. Even those folks who are educated in business practices may not be well-versed in business law. Long Island Law, and his associates at LI-Lawyers.Com have been helping businesses get off the ground for decades and can advise you on a plethora of subjects related to business formation.

The complex business world is tough to break into, especially in this economy. To get your business off to the best possible start, your Long Island business formation lawyer can advise you on a number of issues that can literally “make or break” your chances for success. Some of these issues include incorporation, or moreover, the decision on whether to incorporate your business or to hold the business as a partnership or sole proprietorship. There is a big difference to each, the most notable of which is the liability that you face, financial and otherwise, when you own a business that is not incorporated. Your Long Island business formation lawyer can help you discover whether incorporation is right for you, and help you to weigh the pros and cons of each business structure.

Basically, there are two types of corporations – the “C” corporation and the “S” corporation. The c-corp is taxed on two tiers on the federal level. Tax must be paid on the profits that the corporation makes. Tax must also be paid on the money that any shareholders or the owners of the corporation themselves receive, including salary, stocks, and more. The s-corp has special tax status that allows it to be treated much like a sole proprietorship or partnership. Any profit made passes through to the owners and shareholders and is taxed on their individual income tax returns.

Your Long Island business formation lawyer can also help you with determining whether your business might benefit more from becoming a limited liability corporation or LLC. An LLC affords the business owner lesser liability than a sole proprietorship, which can be important if your business faces financial troubles in the future.

A consultation with your Long Island business formation lawyer is your best bet for determining which business structure meets your needs for your current situation.