We specialize in estate planning matters, but our expertise also extends into the realm of business planning. You have a lot of decisions to make when you decide to go into business for yourself, and we can help you understand the lay of the land from a legal perspective.
Our firm has provided guidance to countless different business people over the many years that we have been practicing, and we can get to know you, gain an understanding of your objectives, and make the appropriate recommendations. We can help you from day one when business entity selection is a major priority, and we can also be there for you along the way when legal issues arise when you are doing business here in southwest Florida.
Business Entity Selection
The appropriate business entity will depend upon the size and scope of your business and your overall objectives. Many people decide to strike out on their own, and this can certainly provide freedom and open ended financial possibilities. A sole proprietorship would be the simplest business entity that you can choose. The name is self-explanatory: one person owns the business entity.
From a tax perspective, you would continue to file your individual tax return as usual. You would not have to file a return on behalf of the sole proprietorship. When you file IRS Form 1040, you would include Schedule C. On this form, you would record your income and the expenses that you incurred when you were doing business as a sole proprietor.
This can seem like a logical business entity for you if your situation is uncomplicated. You simply provide a product or service as the sole owner, and you report your income and expenses on your tax return. The downside is the fact that there is no asset protection. The sole proprietorship would not be a separate entity from a legal perspective, and this can be a source of concern.
As a response, even if you are the only person involved in the enterprise, you could establish a single member limited liability company or LLC. Under these circumstances, there would be separation between your personal financial profile and the actions of your business. With a limited liability company, you have what is called flow-through taxation. Though there is separation between the member (or members) and the business entity when it comes to asset protection, you can still claim profits and losses on your individual tax return. This allows for a simple, streamlined tax situation.
In-Depth Business Planning Information
Education is very important to our firm, and we go the extra mile to make information available to people here in the greater Naples/Fort Myers area. We get out into the community offering free seminars on an ongoing basis, and you can learn a great deal about business entity selection if you attend one of these sessions. The schedule is updated regularly, and we hold sessions at various different locations and at various different times. You will definitely be able to find a seminar that fits into your schedule.
We also make a concerted effort to disseminate estate planning information through our website. This blog is regularly updated, and you can bookmark it to keep yourself informed.
A limited liability company or sole proprietorship is not going to be appropriate for every person who is starting a business. In addition to sole proprietorships and limited liability companies, there are also general partnerships, limited liability partnerships, C corporations, and S corporations. If you would like to have an in-depth discussion with our firm with regard to your business entity selection process, we would be glad to assist you.
At the consultation, we will get to know you, we will gain an understanding of your situation, and we will advise you accordingly. If you’re ready to get started, call us at 239-225-7911 or send us a message through our contact page.
