Experienced Business
Organization Attorney in Utah
Taking the leap to finally start your own business is exciting and exhilarating, it can also be one of the most challenging and stressful times in your life. You probably have a checklist of everything you need to do that seems to grow longer and longer every day. Matters like establishing a company bank account, office space, inventory and a workforce are all incredibly important things that need your attention, but there are a few legal provisions you need to have in place before proceeding with your business venture.
It is important to do things right whether you are just starting a new business or are well-established in Utah to ensure you, your personal estate and your new business are secure and legally protected. Why risk going it alone? Make certain you and your assets are protected and you are operating your business within the law with an experienced business attorney. Finding the right business attorney is like having a partner with extensive knowledge in business organization and tax law to help steer you into the future and through any unforeseen challenges.
Utah-based attorney, Eric Froisland has 15+ years’ experience and specialized knowledge with business organization, estate planning and tax law along the Wasatch Front and throughout the Beehive State. Imagine the sense of security you’ll feel knowing you have a skilled legal advocate to confidently guide you through every stage of building your company. And the best news? Hiring Froisland Law doesn’t have to break your budget.
Choose the Best Legal
Structure for Your Utah Business
Your company’s legal structure needs to be established first and foremost; whether you are a one-person operation working from your garage or if you need a workforce in-place for production. It is important to identify the best entity formation that will be most beneficial to you and other parties with vested interest based on your current and future goals and other consequential issues like profit-sharing, taxation, and limitation of liability. Here is a break-down of the five basic legal structures:
Sole Proprietorship
A Sole Proprietorship, also known as a 'DBA', defines a business that is not separated from the owner but is simply know under a different name as the owner. This structure is for businesses in Utah where all income is added to the owner's personal tax return (known as pass-through taxation). The terms also state that the business owner is personally liable for all company debt.
Partnership
The business classification will change from Sole Proprietorship to a 'General Partnership' if there is more than one owner. Also classified as a DBA, a Partnership states that all identified business owners are liable for the company's debt. This means that in a lawsuit you could lose personal assets including your home, your car and savings. A DBA can be complicated with differing guidelines within each separate jurisdiction. Make an appointment with the experienced legal advocates at Froisland Law to learn more.
Corporation
A corporation will be considered separate from the business owner(s) to shield against personal liability of the company's debt. Also known as a C-Corporation, this business entity is completely separate from its owners and can enter into contracts, buy or sell real estate and can even sue and be sued. Tax advantages of a regular corporation are considerable with the ability to deduct a wide-range of business expenses including healthcare. Business owners and the corporation report income through separate tax returns. A corporate structure includes:
- Shareholders (owners of the corporation’s stock)
- Board of Directors (elected by shareholders)
- Corporate Presidency including President, Treasurer, Secretary, etc.
- Officers (hired to run day-to-day operations)
S Corporation
An S corporation is like a regular corporation; recognized as an individual entity, but shareholders hold special Internal Revenue Service (IRS) tax status with elected subchapter S treatment. This means that S corporation shareholders are not only protected with limited liability for the debt, certain obligations, and liabilities but will also retain taxation at their individual rates. The required IRS Form 2553 must be filed at any time during the previous tax year or by the 15th day of the third month of the applied tax year for effective S corporation status. For more information about becoming an S corporation in Utah, contact Eric at 801.290.2130.
Limited Liability Company
A Limited Liability Company, or LLC, is a separate legal entity like a corporation but there are no stocks or shareholders. Less formal than a corporation, owners of an LLC structured business are known as 'members', not shareholders. LLC members also enjoy 'pass-through' taxation for liability protection of personal assets. The entity legally requires an Annual Members' Meeting to review the organization's Operating Agreement and discuss any modifications to the original business organization. An LLC is an ideal option for a 1-5-person business startup in Utah.
Contact Froisland Law in Utah
It is vital to understand the significance of local, state and federal requirements for your industry like licensing, restrictive ordinances and permits to make sure your efforts aren’t stalled by costly fines and avoidable liability. Contact Eric or call 801.290.2130 for trusted legal counsel to help you determine the most beneficial legal structure for your business, so you can move forward with confidence and focus on all of the other details that will make your new company a success.