Business Law

Starting your own business can be easier than you think.

Corporations

  • Shareholder liability is limited to loss of amount invested in the corporation
  • Shares can be easily traded
  • Dividends are taxed at a lower rate than wage income

Small corporations (sub-S)

  • Easier for individuals to administer
  • Corporation is not taxed, individual owner pays taxes
  • Liability protection

limited liability companieS (aka LLC's)

  • Liability protection
  • Combines the benefits of a partnership with those of a corporation
  • LLC is not taxed, individuals pay taxes as though the LLC were a partnership
  • Better protection from creditors and from bankruptcy trustees

limited liability partnerships (llp's)

  • Like LLC's, except that the general partner is fully liable
  • Great protection for limited partners from creditors and bankruptcy trustees