Starting a business is an exciting time with much to consider. Starting a business is an exciting time with much to consider. Properly forming your business is an important first step, as it can protect your personal assets and provide favorable tax treatment.
Selecting your entity type
In order to start a business, you need to create an entity. You can choose among a variety of business structures, including an LLC, C-Corporation and S-corporation. Selecting an appropriate business entity is important when considering the factor of liability. New Jersey treats a business entity as separate from those who control it, including owners, members and shareholders, and, when operating your business with entity compliance, the personal assets of an owner or stakeholder are protected.
What is the difference between an LLC, S-Corporation and C-Corporation?
The major difference between an LLC, S-Corp and C-Corp is the taxation structure that applies to each. Your tax needs will determine which structure you choose. S corporations pay only one level of taxation at the shareholder level while a C corporation pays taxes at both the corporate level and the shareholders level. An LLC is subject to taxation at the member level.
S corporation and C corporation structures require bylaws, shares and, shareholder meetings, while there are no such requirements for an LLC. Picking the right structure for your company can be complicated. Contact Hartmann Law today for help.
The type of business you will operate may require you to comply with local, state and federal law and regulations. An Attorney can provide great value in ensuring you being your business with compliance and avoid issues that could jeopardize your business after it has opened.
Contact Hartmann Law
If you are interested in forming a business in the State of New Jersey, you should contact an attorney to help you through the process. Hartmann Law is ready to guide you through business matters an help you reach your potential as the owner of a business. Contact Hartmann Law today.