Setting Up Your Business To Succeed
When starting a business, it is vital to fully consider your options in choosing a business structure. The structure you choose can impact your taxes, personal liability and ability to succeed. At Batson Nolan PLC, our business and corporate law attorneys can assist you in choosing the right business structure to suit your needs and goals.
Our attorneys at Batson Nolan PLC have decades of experience helping clients in Tennessee and Kentucky from our offices in Clarksville and Springfield. Whether you decide to register as an LLC, corporation, sole proprietorship or other business entity, we can help you fill out the paperwork to maintain compliance with state regulations.
Understanding Your Business Structure Options
Tennessee and Kentucky offer several business structures, each with its own advantages and disadvantages. Our business and corporate law attorneys have experience in assisting individuals, including professionals, with starting a new enterprise or reorganizing an existing company. Your choice should align with your business goals, liability preferences and tax considerations. Here are some common business structures in Tennessee and Kentucky.
A sole proprietorship is the simplest form of business, where an individual operates the business on their own. It offers complete control and simplicity but also exposes the owner to personal liability for business debts and lawsuits.
In a general partnership, all partners have equal management authority and share rights and liabilities equally. This type of partnership does not provide personal liability protection, meaning each partner is personally responsible for the partnership’s debts and obligations.
Limited Liability Partnership
A limited liability partnership is a partnership where all partners have limited liability protection. This means that each partner’s assets are shielded from business debts and lawsuits resulting from the actions of other partners. LLPs are often preferred for professional service businesses like law firms, doctor’s offices and accounting practices.
Limited Liability Company
A limited liability company (LLC) combines the simplicity of a sole proprietorship with the limited liability protection of a corporation. LLC owners are called members and have flexibility in structuring their management and taxation.
A corporation is the traditional form of a limited liability business entity. Corporations provide strong personal liability protection to shareholders, but the government has greater oversight. In Tennessee, you can form either a C corporation or an S corporation, each with its own tax implications and government structures.
If your business has a charitable or nonprofit purpose, you can register as a nonprofit corporation. These organizations are eligible for tax-exempt status and must adhere to specific regulations.
A joint venture is created when two or more individuals, corporations, LLCs, or other entities combine their property, money, labor and skill in a joint undertaking for profit. Joint ventures usually take the form of corporations, LLCs or partnerships.