Business Formation Lawyer Calhoun County, Alabama
Anniston T. Boice Turner Jr. has advised many East Alabama enterprises on the most beneficial structures for their businesses. Whether you are a small one or two man operation, or you’re planning a more involved enterprise with multiple partners or shareholders, business formation attorney Boice Turner can tailor a structure that meets all of your requirements. Contact our us to begin discussions about your business formation.
Business Structures in the State of Alabama
The type of business structure that you select depends on several factors, including the number of owners or investors involved, the need to separate personal assets from business assets for the purpose of legal liability, and the tax advantages (or disadvantages) offered by each structure. Alabama law allows for a variety of business structures, including:
- Sole Proprietorship – By definition this business structure is owned by a single individual. The business does not have a separate legal existence from its owner even if it is registered under a fictitious name, so there is unlimited personal liability.
- General Partnership – This operates in the same way as a sole proprietorship, but instead of a single owner, there are two or more part owners. A Formal Partnership Agreement is drafted by a business formation attorney and becomes the governing document for the owners.
- Limited Partnership – This type of partnership separates partners into two classes. The partners who do not share in the responsibilities of operating the business are referred to as limited partners.
- Limited Liability Company (LLC) – In an LLC the company does not pay taxes on its profits. Partners in an LLC pay personal taxes on their share of the companies profits after their share is passed on to them. The partners’ personal liability is limited.
- Limited Liability Partnership (LLP) – LLPs are taxed in the manner of other types of partnerships. The LLP limits the liability of each owner with regard to misconduct of the other partners. Like the LLC, the income flows through the partnership, and the partners are taxed on their shares of the profits on their personal income taxes.
- Corporation – A corporation is an entirely separate entity from its shareholders. They are designated as “C” and “S” corporations depending on whether they are taxed at the company level (C Corporations) or the profits flow through to the shareholders and they are taxed with each of their personal incomes (S Corporation). The liability of the shareholders is limited.
Professional Business Formation Lawyers of Anniston
Business Lawyer T. Boice Turner Jr.will help you select the safest and most profitable business structure for your enterprise. He can also assist you in modifying your existing business structure. To schedule an appointment in Calhoun County call the Anniston law office at (256) 235-1901.