One of the most common mistakes a business owner can make is failing to properly establish and maintain a business entity separate from their personal assets. By creating a separate business entity, the business owner or owners create a liability "shield" for the activities of the business and its employees. There are many entities available, but the most common entity formed is a Limited Liability Company ("LLC") that has the business owner or owners as "members" of the LLC.
In South Carolina, this type of entity enjoys the most freedom from regulatory reporting burdens and offers the business owner or owners the greatest flexibility for taxation and business maintenance purposes.
As an LLC, you can also elect to be taxed as an S Corp, which allows you to avoid certain tax liability. If you decide to join together with a business partner and become "members" in an LLC, then we would also recommend having a Partnership Agreement drafted. The Agreement will outline all the rights and responsibilities of each member at the inception of the entity's formation.
We've helped numerous business owners take the important step to protect their personal assets by creating an LLC for them. We file the Articles of Organization, obtain the Internal Revenue Service Employee identification Number (EIN), and draft Partnership Agreements for LLCs with multiple members. We also draft employment contracts, independent contractor agreements, and employee handbooks for your business.
Contact us today for a free consultation on your business and recommendation on the best business entity to pursue. We will meet and discuss your current or proposed business and provide legal guidance on how to proceed so you have the greatest liability protection available.