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Lawyers.com Do It Yourself Personal and Business Legal Forms
Bills of Sale, contracts, consultant agreements and more. Includes a customized General Contract of Services form by state.

Nolo Paid Legal Forms

Amendment to Contract
Attachment to Contract
Choose the Best Legal Entity For Your One-Person Business
Confidentiality (Nondisclosure) Agreement
Contract for Manufacture of Goods
Contract With Independent Contractor
How to Do Business Outside Your State
How to Safely & Legally Hire Independent Contractors
License & Merchandise Creative Art
Market Your Invention
Nolo's Online Trademark Application
Offer of Employment
Protect Your Artwork
Trademark Basics for Naming Your Small Business

How To Find The Best Form Of Liability Protection For Your Business

How Business Owners Can Choose Between S Corporation vs. C Corporation vs. LLC

Madison, WI (PRWEB) October 15, 2008 — (www.bizfilings.com) – In an uncertain economy, having a legal structure for your business that provides limited liability protection is more important than ever. However, choosing between the most common business structures seems daunting to many business owners.

Karen Kobelski, general manager for incorporation services leader BizFilings.com, said business owners often put off the important task of incorporating their business because they're uncertain whether to choose a corporation or limited liability company (LLC). Given uncertainty in the economy, she said it has become more important than ever for business owners to obtain the benefits of limited liability protection – so that negative factors experienced in business don't negatively affect a lifetime of retirement savings.

Ultimately, the only mistake is not using a legal structure that provides limited liability protection at all.

To choose the right legal structure for a business, Kobelski offers these five tips:

View a Side-by-Side Comparison
Limited Liability companies (LLCs), S corporations and C corporations are the most common legal structures small business owners consider, but it's helpful to know the basics about all structures. The first step in choosing the right legal structure is knowing important differences that can influence your choice. One of the best tools for comparing entities at a high level is a good side-by-side business entity comparison chart. Learning how different legal structures are managed, taxed, and organized can helps identify the entity types to consider.

Attend a Webinar
A good webinar on choosing a business structure describes the benefits of each legal structure you're considering. It talks about advantages, disadvantages, taxation, and day-to-day operations. In a few minutes, you'll gain insights that will lead you closer to choosing the right legal structure for your business.

Formation Assistant
There are a few automated tools that aid in selecting a legal structure. Among these is the Formation assistant from BizFilings. Tools like the assistant ask you questions about how you envision the organization, day-to-day activities, and future of your business and then provide an outline of how certain business structures may meet your criteria.

Talk to an Accountant
After you know the basics about each structure you're considering, talk to your accountant. Based on your plans for running, growing, and operating the business, your accountant may identify the best structure for your business from a tax perspective.

Talk to an Attorney
It's best to talk to an attorney after you already know the basics about legal structures, have consulted your accountant, and have narrowed down the options. This way, you're paying to be advised — rather than educated. Ask their opinion on legal structure for your business based on your company's ownership, liability, day-to-day operations, and also future goals.

It's commonplace for accountants and CPAs to have different recommendations from an attorney, according to Kobelski. In these instances, she said the business owner needs to determine the most compelling reasons and select the legal structure that they believe is warranted.

"Since most businesses can thrive equally well as a C corporation, S corporation, or LLC and retain the benefits of limited liability protection, there's no indisputably right or wrong answer — just tradeoffs," said Kobelski. "Ultimately, the only mistake is not using a legal structure that provides limited liability protection at all."

To learn more about the advantages of each type of structure, business owners can visit business incorporation services leader BizFilings today. By offering a side-by-side comparison table, a free webinar on 'choosing a business structure,' a "formation assistant" that walks you through important considerations, and a free Guide to Forming Your Business, it's a great place to gather valuable information.

About BizFilings:
BizFilings (www.bizfilings.com) is the Internet leader in providing incorporation and related services to business owners. Bizfilings professionally forms corporations, limited liability companies (LLCs), and nonprofits faster than anyone else. Its rush service makes it possible to file a corporation or LLC in as little as 24 hours.

BizFilings is a part of Wolters Kluwer, a leading multinational publisher and information services company. Wolters Kluwer has annual revenues (2007) of €3.4 billion, maintains operations in over 33 countries across Europe, North America, and Asia Pacific and employs approximately 19,500 people worldwide.