The first question we usually get when someone wants to form a company is, “What type of company do I need?” In order to answer this question, you will need to consider the proposed future for the entity, including the degree of formality of record-keeping, the liability protection, and the structure of ownership. Each of these factors will predominate in favor of a particular type of entity. For example, a sole proprietorship or single member liability company will require less documentation and simpler ownership that will entail fewer reporting requirements outside of the basic Company Agreement, Annual Franchise Tax Payment, and designation of a Registered Agent.
To the contrary, an S-Corporation or C-Corporation will require board meetings, bylaws, and other sophisticated negotiations and documentation with stakeholders and shareholders. Openness and input in discussions with counsel will help to guide your efforts to determine what type of entity is appropriate. RR&A can help with this process and has guided hundreds of similar parties in the past as we make their business goals a practical reality.
Disclaimer: The information and material on this website is general information about our practice and firm. This information does not offer specific legal advice and the use of this information does not create an attorney-client relationship with RR&A or any of its attorneys. The information on this website should not be used for legal advice, and persons should not act upon the information on this website without engaging professional legal counsel.