How To Start A New Business
Starting a business is exciting and overwhelming. While you are taking on this new responsibility, there is a lot that you are accountable for and it's easy to let things slip through the cracks. You want to build a strong foundation for your business, and a lawyer will make sure you are taking the appropriate steps to do just that. The team at Foster Law, PLLC, has years of experience helping businesses in North Carolina.
Determining What Type Of Business Is Best For You
There are many things to consider when starting a business. One of the first things you will need to do when starting a business is to choose the business formation that best fits your needs and helps achieve your goals. Each formation comes with specific tax consideration and leadership structures. At Foster Law, PLLC, we can help determine which formation would be best for you. For example, here are some of the structures you may consider:
- Sole proprietorship. A sole proprietorship is a company with a single owner. They are easy to set up but often do not offer protections from liability.
- Partnerships. When you have more than one owner, there are partnerships. This includes general partnerships, where people share equal responsibility and liability of the company. A common type of partnership is a limited liability company (LLC). These types of companies are a mix of corporation and partnership. They are more complex, but allow the company to have more protection. For example, the owners will pay their taxes as part of their income, but still enjoy protection from liability.
- 501(c)(3). It is possible that your company may qualify as a tax-exempt organization, or a 501(c)(3). The Internal Revenue Service (IRS) has determined that you are tax-exempt, or a charitable organization. While your organization will not have to pay federal income taxes, the purpose of your business must not be to generate a profit. As an owner, you cannot receive profits from your organization either.
Call Our Office For More Information
If you are interested in starting a business, you will want to make sure you are set up for success. Let us help. Contact our Fayetteville office today for a free consultation with an attorney. Call 910-600-0149 or fill out our contact form.