Entity Creation Attorneys in Utah
Get help creating LLCs and Corporations: This is not the time for a do-it-yourself approach. Creating an LLC or corporation can protect you, your partner, and investors.
A business should be a separate “entity” from you and your family. This protects you from lawsuits and protects your partners and your business. Business Entities include:
- LLCs (Limited Liability Companies
For many business owners, you have put in the late nights, early mornings, and weekend hours to make your business a success. Incorporating your business helps give you the protection that you need to protect your business and to protect your personal and family assets. Refer to the Utah division of corporations for more information.
Which entity should I choose?
You can choose several different ways to incorporate your business entity. The following is a brief list and description of the most common forms of legal entities:
1. Sole Proprietorship
A sole proprietorship is when a single individual owns and operates a business, typically using their own assets to fund the business. There is little no legal distinction between the business and the business owner in a sole proprietorship. One advantage of a sole proprietorship is that it is simple and requires no formalities. However, a big disadvantage is that the owner has unlimited liability for the business debts and obligations.
A partnership is where two or more persons come together to conduct a business for profit. There are many different types of partnerships, but the one universal advantage for them all is their favorable tax treatment. The major drawback to partnerships is that partners will be jointly liable for each partner’s debt and obligations.
Also, note that unless you comply with the registration requirements of the Utah Division of Corporations, the state will consider your business either a general partnership or a sole proprietorship regardless of what you call yourself.
3. Traditional Corporation
A traditional corporation is historically the most common business entity. A corporation is a separate and independent entity from the owners. This allows you as the business owner to have nearly total liability protection, and is the main reason that this is such a common entity in the business world. However, corporations are subject to double taxation, meaning you must pay income tax on your salaries or dividends, and you must pay corporate taxes on any profits earned.
4. Limited liability Company or LLC
LLC’s have been around for a while, but they are still considered the latest new thing in business entity world. An LLC can be treated as either a partnership or a corporation for tax purposes and offers you liability protection under either option. This allows you to have the flexibility to run your business in the most profitable and effective way possible and still protect you and your family from possible lawsuits.
Why do you need a lawyer?
Utah is a very entrepreneurial state. Our Utah business lawyers are experts in counseling you on the benefits and disadvantages of the various types of entities that you can choose from. We know the corporations and the commercial code in the state of Utah like the back of our hand. Whether you are creating a profit or non-profit entity, we can help you make sure it is set up correctly. We can review your specific circumstances and goals and advise you on the best course of action for you, your family, and your business enterprise.