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The Different Types Business Entities

The Different Types Business Entities

click hereThe American dream is to turn nothing into something. This dream is epitomized in starting your own business from the ground up in hopes of become a huge success one day. Starting your own business is definitely both challenging and exciting; and though it requires and is filled with a great deal of planning and a number of legal concerns, you get to enjoy the sense of fulfillment when your planning comes to fruition.

There are different types of business entities from which a new business owner can choose, each with various laws governing how it is run and organized. As such, choosing between these many options, such as limited liability, an S-corporation, a C-corporation, or limited partnership, can be difficult; fortunately, by speaking with a knowledgeable professional, such as a business lawyer, you can get the information and guidance you need to determine which type of business formation is best for you budding company.

The Limited Liability Companies and Its Advantages

One popular business choice is a limited liability company, otherwise known as an LLC. Being something like a ‘hybrid’ business entity, an LLC combines some of the characteristics found in partnerships and corporations. Like in partnerships, an LLC allows the practice of pass-through income taxation, the practice wherein taxable income goes from the company level to the owner’s level. This practice is intended to eliminate the possibility of double taxation, wherein tax is imposed twice on the same income; first on the company level and, second, on the owner’s level. The main feature of a corporation that an LLC has, on the other hand, is the limited liability of owners, meaning they are usually not responsible for company accrued debts. Other business entities have differing taxation rules, so it is often wise to refer to the counsel of a tax lawyer before settling on one or another.

Owners of an LLC company are called members, of which there is no limit. A member could be an individual or a group of individuals, foreign entities, corporations, or other LLCs. Additionally, compared to S-corporation and C-corporation business types, there are fewer laws that an LLC is required to comply with, often making it a more advantageous business entity to choose. However, no matter what entity you choose, make sure you discuss your full range of options with an Austin business lawyer before making your final decision.

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A Better Future with a Bankruptcy Attorney

www.beustring.comBankruptcy may sound like a bad thing, and in some ways it is not something one wants to happen. But bankruptcy gives a person with outstanding debts a chance to start over.  There could be a better future in filing for bankruptcy, with a bankruptcy attorney.

Bankruptcy can be filed by any individual on his or her own behalf with the help of a lawyer. However, it is essential that the filing be done carefully and correctly, because a case may be dismissed for missing or incorrect documentation and may not be able to be filed again. The rules governing bankruptcy are highly technical, and often couched in legal terms that may not be easily understood. It is highly recommended that a bankruptcy attorney is consulted for the correct and proper filing and processing of bankruptcy.

Aside from filing for bankruptcy properly, a bankruptcy attorney can be very helpful in finding ways and means to maximize the protection of your assets. An attorney would be aware of exemptions and provisions that may work to the advantage of the debtor. At any rate, an expert in bankruptcy law would be in a better position to negotiate with creditors and protect the debtor’s interests.

For example, in some states you can claim exemptions for your property, vehicle, clothing, furniture, pets, jewelry, livestock, tools, equipment, and so on.  There is also protection against wage garnishing, and the potential to secure social security benefits, and civil service or veterans benefits for some debtors.

There are also federal exemptions. In a few states, bankruptcy courts may allow the debtor to choose to follow the federal exemptions, or the state exemptions. A lawyer can assess the debtor’s situation and determine which set of exemptions will better serve the interests of the debtor.  These are just a few reasons why you will be able to start fresh with a bankruptcy lawyer.

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