Business Investments by SmallBusinessLawFirm


									Business Investments

A business investment opportunity 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 Lawyer will be able to address the legal issues
involved in a new business formation structure.

The Following are Examples of Business Formation Structures:

       Partnerships
       Limited Partnerships
       Limited Liability Company
       Corporation
       S Corporation
       C Corporation

One type of business organization opportunity 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 opportunity 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 a qualified and
experienced lawyer.

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