Business Entity Comparisons to Consider BEFORE You Launch
By: Lauren Marsicano
Insta: @networkingmaverick
Business Entity Comparisons to Consider BEFORE You Launch
I’m a business transactional and commercial litigation attorney, and a large portion of my practice is consulting with business owners and entrepreneurs about the differences between the business entities available and which one is right for them. The answer (usually) is it depends!
Every company has a different vision for the lifecycle of the company, and the right business entity fit depends on many factors that we discuss, including the size, business area, location, structure, and goals of the company.
To give you a better idea of the BASIC differences you should consider between the most popular types available in Florida, I’ve created a handy dandy chart below.
Keep in mind, this only covers the basics, and it is NOT inclusive of all the minute differences and considerations you should evaluate before deciding on a business entity. Before taking the leap and launching a business, it is important for you to sit down with both an experienced business attorney and your closest tax advisor so that you can discuss the implications of each entity type for you, both personally and professionally.
This is not the time to skimp! I hear (and have dealt with) so many horror stories from entrepreneurs that blindly launched on their own because they didn’t want to pay a couple thousand dollars in a consult with an attorney and CPA. Sometimes, it can be fixed if caught early enough, but in many cases, the company has to spend thousands upon thousands of dollars in fixing this mistake. You need to take the time to research, budget, and invest in yourself and your future business early-on and at the inception. If you don’t, it could cost you thousands (and sometimes hundreds of thousands) of dollars later. The choice is yours.
*This article is being offered for educational purposes only and is not legal advice. No attorney-client relationship has been formed, and you should always consult an attorney to discuss your unique situation.