The initial organization of a business and the relationship of the individuals will be governed by the documents initially prepared for the existence of that business.

There are five types of business entities for your consideration:

• SOLE PROPRIETORSHIP
  • The Sole Proprietorship does not insulate an owner from unrestricted liability. However, the owner enjoys exclusive control.  A Sole Proprietorship ceases upon the owner’s death, disability, or retirement.
• GENERAL PARTNERSHIP
  • The General Partnership does not provide protection from personal liability to the partners as each of the partners are personally, jointly, and severally liable for all claims.  A General Partnership does have tax advantages, however, and operational formalities are minimal.  All partners have an equal voice in the management of the partnership.
• LIMITED PARTNERSHIP
  • A Limited Partnership is formed by two or more persons and limits the liability of the limited partners to their investments in the partnership.
• CORPORATION
  • Stockholders of a Corporation are typically not personally liable for the acts or debts of the corporation.  There are several options for formation of a Corporation such as forming a Professional Corporation or electing a Subchapter S status.
• LIMITED LIABILITY COMPANY
  • A Limited Liability Company combines the limited liability afforded shareholders of a corporation with the ease of management and favorable tax treatment of partnerships and limited partnerships.
  • The Attorneys at Gasparis & Zembillas can assist you in preparing your business structure.