Business Formation in Missouri
Many business structures exist for those who are starting or looking to start a new business venture. It is important to understand the advantages and limitations of each type of business entity so that you can make the right choice for your enterprise. The Firm helps clients throughout the State of Missouri with a broad range of services related to business formation and structuring.
When starting a business, you must decide what business form and structure to establish. Your business form and structure will influence what type of tax return you file and will have other legal and tax consequences. Many options exist as to the form of your business, including but not limited to corporations, limited liability companies, partnerships, and sole proprietorship. Each has its advantages and limitations.
For example, incorporation affords shareholders personal liability protection and, if structured as an S corporation, the corporation may avoid income taxes by passing profits and losses through to shareholders. In a corporation, however, formal record-keeping and meetings are required by law. A limited liability company (LLC) provides the similar personal liability protection as a corporation with fewer requirements and greater flexibility in shaping the rights and obligations of all stakeholders and management. This flexibility gives parties the ability to draft and structure their Operating Agreement--that is, the agreement that spells out the parties' respective rights and obligations in connection with the LLC--in a manner that best serves their mutual interests and goals. Further, with an LLC, you have flexibility in electing how you wish to report and pay taxes (e.g., as an S corporation, sole proprietorship, etc.).
Each business will have its own unique needs and circumstances, which is why it is important to consult a lawyer. Our Firm can counsel and advise you regarding your particular business situation, needs, and goals.