Business Planning

 

Business formation

 

Joint Venture: An informal association of two or more people that may be treated like a partnership for income taxation purposes. No limited liability.

 

Partnership: This is an entity with two or more partners. The entity does not have limited liability, but instead, the partners are fully liable with individual assets also for any liabilities of the partnership. The partnership is a flow-through entity for income tax purposes, meaning that the partnership does not pay tax on partnership income, but instead, flow that income tax through to the partners.

 

Corporation: A corporation can have one or more owners. The entity has limited liability, meaning that the owners of the corporation are not liable for corporate liabilities with individual assets. Only assets of the corporation are subject to corporate liabilities provided all corporate formalities are observed and the corporate veil cannot be pierced. The corporation pays it own income tax and the owners do not declare corporate income on their individual income tax returns, unless an S election is made under which the income tax does flow through to the partners.

 

Limited Liability Company or Partnership: This is a mixture of a partnership and a corporation. The entity has limited liability similar to a corporation, but has pass-through taxation similar to a partnership.

 

 

Information needed for initial meeting:

  • Names and addresses of owners
  • The desired name of the entity, together with 3 alternate names in the event that the desired name is already in use
  • Address of principal office of entity and name of person in charge at that address
  • Business purpose of entity
  • Initial contributions to entity
  • Any agreed upon terms for sale between owners or terms upon dissolution of entity

 

How To Make An Appointment:

Call (406) 248-6654