Need Help Setting Up a Small Business?
Our South Carolina Business Attorney Has the Experience You Need
Setting up a small business? Don’t know which way to turn or how to begin? Call and make an appointment with our Gaffney business attorney. We will help you set-up the entity that will best serve your needs and also protect your personal assets.
What Type of Entity Is Right for Me?
This depends on your personal circumstances; the purpose of your business; what type of management rights you wish to have; the desire to transfer interest; flexibility you desire; and tax issues to name a few. Thus, we will discuss what your goals are.
The Basic Entities Defined:
- Sole Proprietor: This requires no filing with the state and has no required formalities. Basically, the government considers both the owner and the business to be one entity. The owner has full control as well as unlimited personal liability.
- General Partnership: This is when two or more persons come together to operate a business for profit. You can form this, like a sole proprietor, on the mere intent of two or more people coming together to have a business for profit. There are no formalities or requirements for filing. Partners have equal rights unless modified by agreement as well as unlimited personal liability.
- Limited Partnership: This is a type of partnership where at least one partner will assume personal liability for the partnership. Then, the other partners would be protected. It requires filing with the Secretary of State.
- Limited Liability Partnership: This entity requires filing with the Secretary of State and allows the limited liability of its partners with the requirement of liability insurance.
- Corporation: This is a separate legal entity from its owners. You form it by filing Articles of Incorporation with the Secretary of State. There is limited liability and different tax consequences which may vary depending on if one wishes to be taxed as an S corporation.
- Limited Liability Company: This is also a separate and distinct entity from its owners that requires filing with the Secretary of State. The Articles of Incorporation (or by default if no election is made by S.C. Code) then determines management and control. The government can tax an LLC as a corporation or a general partnership.