Starting a business has its own rewards and responsibilities. It also requires knowledge of the law and probably some outside assistance. This type of help can be obtained from the law firm of Querishi & Salejee PLLC, located in McKinney, Texas.
Understanding the Rules of Business
Different types of businesses have their own tax and operating rules that must be properly understood for the plan to be successful. Sole proprietorships are easy to establish and operate, but the owners should realize that they are liable in the event of lawsuits filed against their businesses. Partnerships are also easy to form and can be easily liquidated. However, their owners will, as in the case of sole proprietorships, be financially liable in the event of legal action. Both a limited liability company (LLC) and a Limited Liability Partnership (LLP) offer more protection to the owners, whose assets and liabilities are kept separate from the business. However, this type of company is taxed in the same manner as both sole proprietorships and partnerships. C-Corporations also maintain financial separation between the owners and allow for an unlimited number of shareholders. S-Corporations, on the other hand, limit the number of shareholders and also place residency requirements on them. Additionally, the investors in this type of business are required to report the profits earned by the corporation on their personal tax returns. A lawyer can advise anyone or any group seeking to establish a business on the requirements and help give them a smooth start.
Getting the Needed Assistance
The type of business to start is based largely on the personal risks that the principle investor and possible partners are willing to take and when they are able to start. These are not easy issues to answer because they require an understanding of Texas tax and business policies, as also the financial status and plans of the prospective business operators. Get the advice you need by scheduling a consultation with the law firm of Querishi & Salejee PLLC, located in McKinney, Texas, at 214-843-0302.