I get asked this question often. Clients wonder whether they even need a business entity and if so, why would they need a lawyer? In short, there are many advantages to creating a business entity, some can be tax advantages (speak with your tax professional), some can promote privacy and some can reduce liability.
Reduced Liability – many people incorporate or create an LLC so that if the business gets sued for actions of its employees, their exposure is limited to the assets of the entity. This is not the case in all circumstances, so it is necessary to consult with a lawyer to determine what liability would be avoided or unavoidable and to determine the correct entity for your business.
Privacy – right now in Texas and Nevada, the shareholders of a corporation and the Members of an LLC are not required to be listed in the state records. There are some exceptions, so consult with your lawyer regarding this issue. Not having to list all the owners can minimize the public access to your personal information.
Tax Savings – various entities can sometimes enable a business model that ultimately reduces taxes for the owners of a business – speak with your lawyer and your tax professional before making any decisions in this matter.
Do you need a business entity? Please call our office to set up an appointment with CiCi to get further
details on what is best suited for your business needs.
