Business Formation: So Many Options, How Do I Choose?

Come explore the various ways to legally protect yourself and your business. Review the slides and decide which option suits your entrepreneurial needs.

Transcript

1. Business Formation: So Many Options, How do I Choose? PRESENTED BY: ATTORNEY SUNNITA BLOUNT
2.  Email-info@creativeesquiher.com  Phone- 678-389-9869  Website: https://creativeesquiher.com/  https://www.linkedin.com/in/sunnita-blount-esq-649b0a34/  Areas of Law:  Sports  Entertainment  Business Law
3. Importance of Business Formation  Legal Structure and Liability: Choosing the right business structure -Sole Proprietorship -General Partnership -Limited Liability Partnership -Corporations -Limited Liability Corporations  Tax Implications: Different business formations have varied tax obligations.  Fundraising and Ownership: Tech companies often need investment to scale.  Compliance and Regulation: Certain business formations require ongoing compliance
4. FIVE TYPES OF BUSINESS FORMATIONS  Sole Proprietorship  General Partnership  Limited Liability Partnership  Corporations  Limited Liability Corporations
5. Sole Proprietorship  Simplest type of business formation  Easy to set up  No Paperwork Needed but you still need to obtain the proper licenses and permits per state and federal regulations  Taxes are reported by the individual on their personal tax return
6. General Partnership  Again one of the simpler business formations to create  Requires minimal paperwork  Business does not pay taxes  Each partner responsible for the others actions  Partners are also responsible for liabilities of the business
7. Limited Liability Partnership/Limited Partnership  LLP-Limited Liability Partnership o Liability limited to the amount the partner puts into the business  LP-Limited Partnership o General Partners manage the company and limited partners invest in the company but have no say in day to day operations  LLLP- Limited Liability Limited Partnership o Relatively new and similar to an LP except the general partners have some liability protection
8. Corporations  This type of business is probably the most advantageous because it acts as a separate entity from the individuals  Board of Directors run the Corp  Shareholders elect the Board of Directors and BOD run the day to day operations  You do have to file paperwork with the state o These documents are known as articles of incorporation  The shareholders do not incur any liabilities from lawsuits or debts of the corporation
9. Limited Liability Corporations  This is a hybrid of a partnership and sole Proprietorship  Whereby the owners are not personally liable for the debts or liabilities of the company  You can lose the money in the company but your personal assets are protected
10. Other Variables  Taxation: Key Considerations: o C Corps face double taxation, where both corporate profits and shareholder dividends are taxed. o S Corps and LLCs avoid this by passing profits through to owners' personal tax returns.  Fundraising Equity vs. Debt: o The choice between raising funds through equity or debt often depends on the business structure. o Equity financing is generally more accessible for corporations, especially C Corps while sole proprietorships and partnerships may rely more on debt financing.
11. Georgia Regulations  Sole Proprietorship- do not need to register their business but again may need certain business licenses to operate o However you’re still required to register your business name with the state especially if you have a fictitious name in which you will need a DBA  You will need a registered agent for any of the types of businesses , o the person who will receive communications and updates regarding your business from the state
12. Questions?? Sunnita Blount, Esq. Over 7 plus years of Experience Serves clients in various states as Of counsel, General Counsel, and In House Counsel Promo: Free 15 minute consultation for the month of September 2024 and if you mention this webinar receive $75 off any one flat fee service https://creativeesquiher.com/client-intake/
13. Free or Low Cost Resources UDEMY HTTPS://WWW.UDEMY.COM/ COURSERA HTTPS://WWW.COURSERA.ORG/ ALT LEGAL HTTPS://WWW.ALTLEGAL.COM/EV ENTS/