Corporations, Partnerships, and LLCs


There are advantages and disadvantages in conducting your business under any type of business form. R.J. Schoettle can assist you in selecting the most advantageous business organization.

There are several types of business entities or forms of ownership that can be used in conducting a business. These entities are: sole proprietorship, partnership, corporation (either Subchapter S or C corporations), limited liability company, or limited partnership.

Issues to consider when choosing an appropriate form of business entity include: (1) whether a business failure would result in the loss of the business owners' personal assets; (2) the anticipated life span of the business; (3) the tax consequences of the business; and (4) the number of parties involved in the business.

A sole proprietorship is a business owned by an individual or an individual and his or her spouse. It is not a separate legal entity. Should the business fail, the assets of the owners of the business are subject to the business debts. To do business under a business name a certificate listing the proprietor's name, address and the business name should be filed in the county where the sole proprietorship does business.

A partnership is a business organization owned by two or more individuals. A general partnership is a business organization in which all partners may bind the other partners to partnership obligations. A limited partnership is one where the general partners are responsible for operating the business and the limited partners (generally investors) have limited liability. For either form of partnership a partnership agreement should be drafted and signed by all parties, and a certificate of partnership should be filed with the county recorder's office.

A corporation is a legal entity separate from its owners. The owners are known as shareholders. The corporation is managed by its directors and day-to-day management is conducted by its officers. A corporation is formed by filing articles of incorporation with the Indiana Secretary of State. A properly prepared and organized corporation will protect the business owners from many of the business obligations and liabilities and can give the business owners tax advantages which are not available in a partnership or sole proprietorship form of business. A corporation has perpetual existence, which means that it can exist beyond the life of its owners.

A limited liability company is similar to a corporation however it is usually taxed as a partnership. The owners are known as members. The LLC can either be managed by its members directly, similar to a general partnership, or can have one or more managers, similar to a corporation or limited partnership. An LLC is formed by filing articles of organization with the Indiana Secretary of State.

Attorney Consultation regarding Corporations, Partnerships, and LLCs

For a lawyer consultation regarding the Corporations, Partnerships, and LLCs strategies, contact Indianapolis attorney, R.J. Schoettle at (317) 374-7918 or complete the attorney contact form. R.J. Schoettle maintains affordable attorney rates and flexible appointments.

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