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 and our Gaffney business attorney will help you set-up the entity that will best serve your needs and 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.
The Basic Entities Defined:
- Sole Proprietor: This requires no filing with the state and has no required formalities. Basically the owner and the business are considered 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. This, like a sole proprietor, may be formed 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 and 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 liability of its partners to be limited with the requirement of liability insurance.v
- Corporation: This is a separate legal entity from its owners formed 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. Management and control are determined by ones Articles of Incorporation or by default if no election is made by S.C. Code. The LLC can be taxed as a corporation or a general partnership.