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At The Peck Law Firm, P.A. we work hard to understand our clients’ business and financial goals to ensure the most beneficial type of business entity is selected. Whether you are seeking to limit personal liability or to improve your tax situation, our attorneys can guide you through the myriad of available entities and their relative benefits. Regardless of the size of the business, from a single member LLC to a multi-investor nested corporation, our attorneys are prepared to help you build the business you desire.
Choice of Entity
In the Raleigh and Research Triangle area, we regularly advise our clients as to the differences between an LLC and a corporation as well as the type of entity that will best serve their current and future business needs. The following is a brief list of the business entities that are available: Corporation, S-Corporation, C-Corporation, General Partnership, Limited Partnership, Limited Liability Partnership, Limited Liability Company (LLC), Non-Profit and Proprietorship. The variables that drive the determination of type of entity include: tax treatment, limitation of personal liability, perpetuity of existence, managerial responsibility, transferability of ownership, and capital contribution. We use our business law experience and knowledge regarding the pros and cons of each type of organizational structure, to assist our clients to choose an entity that is right for their business plan and goals. If you are seeking assistance with incorporating your business, we can provide the information you need to make the right choice.
Why S-Corporation Taxation May Be Good For You
If a client has sufficient revenues, incorporating and electing S-Corporation taxation can provide benefits not available for partnership or sole proprietorship taxation. Particularly, under S-Corporation taxation, an owner can pay himself or herself a “reasonable salary,” and the balance of profits may be distributed as a dividend. This has the potential to save a business, and its owner(s), thousands of dollars in annual social security (“self employment”) type taxes. The IRS has recently expanded tax treatment benefits to the LLC, So, now an LLC can now elect to be taxed as an S-Corporation. In Raleigh and the Research Triangle area, The Peck Law Firm has the experience, knowledge and insight to advise our clients as to whether an LLC or a corporation would best serve their current and future business needs.
LLC's and corporations experiencing rapid growth or decline, can often lose sight of important legal priorities, particularly in the case of contracts and agreements. Many company's in Raleigh and the Research Triangle area are expanding rapidly and are seeking to get products to market quickly. Without the right business law advice, many LLC's and corporations fail to carefully assess arrangements made with suppliers, distributors or retailers. Companies experiencing an economic slow down seek to cut costs, which sometimes includes legal counsel. In both of these instances, sound business judgment is often impaired, which can give rise to costly legal mistakes. We work closely with our clients to ensure that no matter what level of economic prosperity an LLC or corporation is experiencing, their legal rights and obligations are being protected. We also frequently review and create a variety other contracts for our business law clients, such as franchise agreements and uniform offering circulars (UFOC's), license agreements, employment contracts, non-disclosure agreements, non-compete agreements, and joint ventures.