Forming a Legal Business Entity
A Company Limited? What may that be? The term, I rather think, is new to me.
—King Paramount, Gilbert & Sullivan’s Utopia Limited
From all of the new business startups each year, less than 10 percent are formed as corporations. Corporations and limited liability companies (LLCs) are both legal entities, separate and distinct from the people who create and own them. Sole proprietorships are not. Corporations have shareholders. LLCs have members. Sole proprietorships simply refer to a person who owns the business and is responsible for its debts. Many reasons exist why you need to form a legal entity for your business. Chief among those are:
- Structured properly, you cannot be held personally responsible ...
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