Business Entities - Part 2
Starting a business is a major undertaking, but the rewards can be tremendous. New business owners face a hundreds of decisions as they get their business off the ground, one of which is choosing which business entity to use. Last week, we examined several different options for incorporating your business, specifically General Partnerships, Sole Proprietorships, C-Corps, and S-Corps. This week, we are taking a closer look at the remaining options.
The choice of a lawyer is an important decision and should not be based solely on advertising. When you need a knowledgeable attorney, we invite you to contact us to set up a consultation. Evening and weekend appointments are available. We have access to interpreters.
Limited Liability Company
A Limited Liability Company (LLC) has become a very popular entity choice when starting a new business. LLCs come with their own set of rules and regulations that govern their policies and procedures, but the advantages that they offer tend to outweigh the extra step of drafting and executing the necessary documents. A LLC requires the owners (typically called "members") to execute an operating agreement that outlines how the company will conduct its affairs. The success of the company is often closely correlated to the effectiveness of the operating agreement, as this document also outlines the members' decision powers and liability protection.
LLCs have two major advantages. One, they are not subject to double taxation. Two, they provide liability protection to both their members and managers. With the proper documentation and procedures in place, a person involved in an LLC is not personally responsible for the company's debts, obligations, or liabilities. For these reasons, LLCs are very appealing to business owners.
Fictitious Name
This is not specifically a form of business entity itself, but it nonetheless deserves mention. It applies to business entities (or individuals) who intend to transact business in the state of Missouri under a name that is not their own. This is known as "Doing Business As," or DBA. DBA is a popular option for companies who are expanding their services and wish to use a different name to conduct their new services, but who do not want to establish an entirely separate entity.
Business owners who wish to transact business under a different name are required to register this fictitious name with the Missouri Secretary of State. Failure to comply with this registration is classified as a misdemeanor and can be punished as such.
Let's Get Started!
If you are ready to start your own business at the Lake of the Ozarks, we would love to help you out! Our Camden County business attorneys are well-versed in the process and would be happy to guide you through the process. We can help you select an appropriate business form, incorporate your business, draft important legal documents, and more. Choosing the proper business structure and executing effective documentation can promote success in every type of business. Give us a call to get started!
Law Offices of Phillips, McElyea, Carpenter, & Welch, P.C.
The choice of a lawyer is an important decision and should not be based solely on advertising. When you need a knowledgeable attorney, we invite you to contact us to set up a consultation. Evening and weekend appointments are available. We have access to interpreters.
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85 Court Circle N.W., P.O. Box 559
Camdenton, MO 65020 GET A MAP
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