If you have plans to open your own small business in Florida, one of the most important steps in doing so involves establishing a particular type of business structure. Even if you do not plan to open a business in an industry where risks are clear and apparent, such as, say, food service or transportation, virtually every business exposes itself to at least some degree of risk. However, there are certain types of business structures that can limit your personal liability and enhance your peace of mind. At the Law Offices of Levi Williams, P.A., we understand the methods you can use to reduce personal liability with regard to your business, and we have helped many clients navigate the complexities involved in doing so.
Per QuickBooks, one way of protecting your personal assets in the event that someone sues your business involves creating one of two types of business structures from the outset: the S corporation, or the limited liability company. Of the two, the S corp. is typically more popular, because, in addition to limiting personal liability, it also offers some desirable tax breaks for business owners.
However, some business owners avoid the S corp. because there can be considerable red tape involved in running it. For example, if you own this type of business, you must conduct regular board meetings and maintain a board of directors as long as your entity is in operation.
The LLC, on the other hand, is another business structure that protects your personal assets. While this type of structure is generally easier to operate, some business owners avoid it because they want to secure investors, and most investors feel more comfortable placing their money in a corporation. More about business formation and corporate law is available on our website.