What Kind of Legal Entity Should I Form?
A business entity is an organization that has a separate legal identity from its owners or members. Choosing an entity type is one of the most important decisions that an aspiring business owner must make.
While owners are not legally required to form an entity, formalizing a business may lessen the owner’s risk of losing personal assets to pay debts and claims against the business. The legal entity can essentially create a shield between the actions of the owner and the activity of the business.
When choosing an entity, business owners should consider several factors, including the nature of business activity, the protections of limited liability, the requirements for corporate formalities and the tax consequences. Read More>>>
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