There are many reasons why you might want to consider working with others, whether it’s for financial stability or simply because you enjoy being around people. But before you jump into a business relationship, it’s important to understand the different types of business structures and how they can affect your company. Here, we’ll take a look at two common types of business structures: LLCs and partnerships.
Is an LLC Right for Me?
An LLC, or limited liability company, is a type of business structure that offers its owners protection from personal liability for the debts and obligations of the company. This means that if the LLC ever faces legal trouble or goes bankrupt, the owners’ personal assets will not be at risk. However, there are some downsides to this type of structure. For one, LLCs are not well-suited for companies that want to go public or raise capital from investors. And because the owners of an LLC are not personally liable for the company’s debts, they may be less inclined to carefully manage the company’s finances.
Is a Partnership Right for Me?
A partnership is a type of business structure in which two or more people share ownership of the company. Partnerships can be either general partnerships or limited partnerships. In a general partnership, all partners are equally liable for the debts and obligations of the company. This means that if the partnership ever faces legal trouble or goes bankrupt, the partners’ personal assets will be at risk. Limited partnerships are similar to LLCs in that they offer their owners protection from personal liability for the debts and obligations of the company. But unlike LLCs, limited partnerships are well-suited for companies that want to go public or raise capital from investors.
There are many factors to consider when deciding whether to form an LLC or a partnership. Our law firm can answer your questions and provide you with legal guidance. Contact us today to get started.
Which Should I Choose?
The most important factor in deciding which business structure is right for you is understanding the level of risk you’re comfortable with. If you’re willing to put your personal assets on the line in order to have full control over your company, then a general partnership might be the right choice for you. On the other hand, if you want to limit your personal liability in case of legal trouble or financial difficulties, then an LLC or a limited partnership might be a better option.
Should I Hire a Lawyer for Help?
No one can give you a definitive answer on whether or not you should hire a lawyer to help with the formation of your LLC. It really depends on how comfortable you are with the process and whether or not you feel like you need professional guidance. That being said, there are some definite advantages to working with an experienced lawyer.
For one, a lawyer can help make sure that all the necessary paperwork is filed correctly and in a timely manner. They can also offer advice on what type of business structure would be best for your particular situation. If you’re not sure whether an LLC or partnership is right for you, a lawyer can help explain the pros and cons of each option so that you can make an informed decision. Call us today at 248-572-1050 to get started.