Business Investment Partners may be a consideration for a small business owner who is looking to grow his business. Partners can contribute to the growth of a small business by providing financing, expertise with other aspects of the business or perhaps both. Many issues need to be addressed when a business owner is considering changing the ownership structure of his business. As a sole owner, a business most likely has been operated as a Sole Proprietorship which is the most basic and simple business legal structure. There are a number of other business formation structures available to owners of Small Businesses who are joining with new partners to expand their operations. When faced with these important decisions an experienced Business Attorney will be able to address the legal issues involved in a new business formation structure.

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The Following are Examples of Business Formation Structures:

Partnerships
Limited Partnerships
Limited Liability Company
Corporation
S Corporation
C Corporation

One type of business organization may be a simple partnership. This type of ownership is defined as a business owned by two or more people who have not filled papers to become a Corporation or a Limited Liability Company. The partnership can then be a general partnership or a limited partnership. Each form of ownership has its own set of rules governing taxes owed by the owners and rules governing the liability of debts and obligations that the company may have incurred. There are pros and cons that exist with each type of business structure and it is important that all issues be considered before a decision is made regarding the partnership structure best suited for the business organization.

Another type of business formation structure that may be considered when the personal liability issues of a simple partnership is a problem for owners, is the Limited Liability Company or LLC. This business structure combines attributes of a corporation and a partnership. In this type of business formation, liabilities incurred by the company do not pass to the owners similar to a corporation structure. The tax structure and responsibility for taxes in an LLC work similar to a partnership or sole proprietorship. The legal process involved in setting up an LLC is more complicated than those involved in creating a partnership, however once established running an LLC is less complicated than running a corporation. It is obvious that the choices involved in the legal formation of a particular type of business structure is complex and need to be carefully considered.

A business owner in this situation will benefit greatly with the assistance of our qualified and experienced law office.