Creating a new business is one of the most exciting times in your life. However, it can also be stressful and create anxiety when you do not understand how the Business Formation process works or how to set your business up for success from the start.
Fortunately, when you have an experienced Missouri Business Formation attorney at The Law Office of David S. Schleiffarth, LLC working for you, you can get the guidance you need to create your business and remain in compliance with local, state, or federal laws.
Schedule your free consultation today to find out more about how to officially form your business in Missouri.
Legal and Tax Considerations When Forming a Business
When you want to create a business, you may have no idea where to start. Generally, to create your business, you need to determine which form of business entity to establish before anything else.
The most common forms of business entities are:
- Sole Proprietorships
- S Corporations
- C Corporations
- Limited Liability Companies (LLCs)
- Limited Liability Partnerships (LLPs)
- Joint ventures
The form of business determines which tax return forms you have to file. There will also be legal factors to consider when selecting your form of business entity. If you are unsure of which is best suited for your business needs, a Business Formation lawyer can help.
Opting for A Business Formation Service
Selecting the right Business Formation service is essential if you hope to avoid unnecessary costs and financial risks. If you do not form your business correctly, you may be at risk for tax penalties and wind up owing significantly more than you would have had you selected the correct business structure.
Depending on your business type, it could also be shut down if you do not have the proper zoning, permits, licensing, or other requirements in place to have your business up and running.
Become A Business Owner Today – Get Help From Our Business Formation Attorney in St. Louis, Missouri
If you are feeling intimidated at the thought of moving forward with your new business venture, you are not alone. It is not unusual for would-be entrepreneurs and business owners to be confused by the Business Formation process.
When you need legal advice you can rely on, turn to a reputable Missouri Business Formation attorney at The Law Office of David S. Schleiffarth, LLC.
Start working on your Business Formation plans and strategies as soon as today when you contact our office for a confidential consultation. You can reach us through our secure contact form or by phone to schedule your initial case review.
How to Choose the Right Business Entity
Choosing the type of business entity that is right for you is a tough decision to make. To make the right choice, you should first discuss your professional goals and personal needs with your Business Formation attorney.
The best type of business structure to select can vary widely based on these factors. Here’s more about the different types of business entities in the US:
LLC (Limited Liability Company)
A limited liability company (LLC) is formed to reduce the business owner’s personal liability should they be sued. This way, your personal assets and debts are kept separate from your business’ assets and debts.
This will also help protect you from creditors or judgments. LLCs are one of the top business structures chosen by single-owner businesses. It helps protect them from liability but allows them to operate as a sole proprietor.
How to Form an LLC
To form an LLC in Missouri, you can follow these steps:
- Choose a name for your LLC
- Select a Registered Agent
- Prepare your Articles of Organization and file them with the Missouri Secretary of State
- Obtain a formal LLC Formation Declaration Certificate from the state
- Obtain your Employer Identification Number (EIN)
- Open up a business bank account
- Obtain any necessary business licenses
- Draft your Operating Agreement
Am I Protected From All The Debts Of My LLC?
All of your personal assets are protected from the debts of your LLC. However, your business assets could be in jeopardy from creditors.
Corporation
A Corporation is a business structure that acts as a single entity and is recognized as such for tax purposes. There are several types of Corporations, including Nonprofit Corporations, S Corporations, C Corporations, and more.
What Is a Nonprofit Corporation?
Nonprofit Corporations are organizations formed that are meant to serve the public. Examples of Nonprofit Corporations could include educational organizations, religious organizations, and nonprofit charities.
What Is an S-Corp?
An S Corporation is not subject to double taxation and S Corporation owners must report losses and profits as part of their personal tax returns. However, S Corporations can have no more than 100 shareholders, are subject to higher IRS scrutiny, and are only available for permanent US residents or US citizens.
What Is a C-Corp?
A C Corporation is designed to limit the business’s individual liability, including the liability of employees, shareholders, or directors. However, C Corporations are often taxed twice.
How to Form a Corporation
If you are interested in forming a Corporation, you could follow these steps:
- Select your Corporation name
- Appoint your Directors
- Appoint a Registered Agent
- File your Articles of Incorporation
- Have your attorney draft your Corporate Bylaws
- Draft a Shareholder Agreement
- Issue stock
- File the required IRS forms and documents
Am I Protected From The Debts Of My Corporation?
Corporate business owners are protected from the debts of their Corporation. Their personal assets are also protected from liability. This is because the Corporation is an entirely separate legal entity from the business owner and its shareholders.
What Is a Partnership?
In a Partnership, two or more people share ownership of a company and have a partial ownership of it. Partners share the profits as well as the responsibilities of managing the company. They are liable for both their own actions on behalf of the company, as well as for the actions of the other partner(s).
What Is a Joint Venture?
A Joint Venture involves the formation of a business with two or more parties to create a single Enterprise.
What Is a Sole Proprietorship?
A Sole Proprietorship is a business owned by a single person. This is an entity that is personally liable for any of the business debts or lawsuits that may arise. Although a Sole Proprietorship may be less expensive to start and maintain, it could wind up being far more costly if legal issues arise.
How Long Does It Take to Form a Business in Missouri?
You have the right to file your Formation Documents by yourself. However, doing so could leave you at risk for liability or tax implications if you failed to take certain requirements into consideration.
The amount of time it will take to form your business will vary widely depending on the type of business structure selected, the amount of money you need to get your business up and running, and other factors. Generally, the more complex your business venture is, the more you can expect to spend on Business Formation costs.
Contact A Business Formation Attorney in St. Louis
You should hire a Business Formation attorney in Missouri to help you make your dreams of becoming a business owner a reality.
Your Business Formation lawyer will be by your side every step of the way as you learn to navigate the responsibilities of business ownership. These responsibilities will include:
- Choosing the right business structure for tax purposes
- Registering your business with the state
- Drafting and reviewing Business Formation documents, including Operating Agreements, Articles of Incorporation or Organization, and contracts.
- Helping secure financing
- Establishing shareholder’s rights
- Helping you develop a Business Succession Plan
- Addressing potential tax implications
- Ensuring you are in compliance with local, state, or federal laws or regulations
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