Why Choose Tien Law Firm?
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From beginning to end, we seek to reduce future risks and liabilities.
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With virtual consultations, it's easier than ever to get started.
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We offer flexible and hybrid billing arrangements to make costs more predictable.
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We are dedicated to seeking excellent results for our clients.
Choosing the Right Entity for Your North Carolina Business
Deciding which business entity is best suited for your new venture in Raleigh or elsewhere in North Carolina requires a careful evaluation of your specific circumstances and goals.
Some key factors to weigh include:
• Number of owners: Sole proprietorships and general partnerships work well for single-owner or dual-owner businesses, while LLCs, corporations, and limited partnerships accommodate a wider range of ownership structures.
• Liability protection needs: If robust personal asset protection is a top priority, an LLC or corporation may be the better choice over a sole proprietorship or general partnership.
• Tax implications: Sole proprietorships, partnerships, and S-corps offer pass-through taxation, while C-corps are subject to double taxation. Understanding the tax ramifications for your business is critical.
• Expansion and growth plans: Entities like corporations and LLCs tend to provide more flexibility for raising capital, taking on investors, and enabling the business to scale over time.
• Compliance and administrative requirements: Sole proprietorships and general partnerships typically have fewer formal requirements than more complex structures like LLCs and corporations.
Working closely with an experienced Raleigh business entity formation attorney can ensure you weigh all the relevant factors and select the legal structure that best supports your company's unique needs and objectives, both now and in the future.
Don't leave this vital decision to chance. Contact our Raleigh business lawyer today to schedule a consultation and get your new North Carolina business started on the right legal footing.
What Clients are Saying About Tien Law Firm
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Sonya is an excellent lawyer whom I would hire again in a heartbeat. She is incredibly intelligent, delightfully clever, intensely dedicated, and wonderfully warmhearted. I completely understand why her clients not only trust her but also love her.- Tanja H.
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I am extremely happy and satisfied with the legal services provided by the Tien Law Firm and Ms. Sonya Tien in particular. Ms. Tien went above and beyond.- Inessa B.
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She is One of the best you can ever find...always there to take your calls and responds to your emails fast.- Bright I.
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Sonya is a brilliant lawyer who absolutely knows what she is doing! As a lawyer myself, it's easy for me to tell when another lawyer is overlooking something, and working with Sonya, I feel confident that nothing at all will be overlooked.- Melody M. - Attorney
Common Business Entity Types in North Carolina
When starting a new business in North Carolina, you'll typically have the following entity options to choose from:
Sole Proprietorship
The sole proprietorship is the simplest and most common form of business entity. It involves a single individual who owns and operates the company. Sole proprietorships are easy to establish, offer minimal formal requirements, and provide the owner with full control. However, this structure offers no liability protection, and the owner is personally responsible for all of the business's debts and legal obligations.
General Partnership
A general partnership involves two or more individuals who co-own and manage the business. Partners share in the profits, losses, and liability. This structure is relatively simple to form but provides limited liability protection, as partners can still be held personally responsible for partnership debts.
Limited Partnership (LP)
An LP consists of at least one general partner who manages the business and bears unlimited liability, as well as one or more limited partners who contribute capital but have limited involvement in operations and limited personal liability. LPs can be attractive for raising investment capital but are more complex to establish and maintain.
Limited Liability Company (LLC)
The LLC is a popular hybrid entity that combines the liability protection of a corporation with the flexible management structure and tax benefits of a partnership. LLCs offer owners strong liability shielding, pass-through taxation, and considerable operational flexibility. This is one of the most commonly recommended entity types for new businesses in North Carolina.
Corporation (C-Corp)
Corporations are a more formal business structure that establishes the company as its own legal entity, separate from its owners. C-corps provide robust liability protection, but they are subject to double taxation - the company is taxed on its profits, and shareholders pay personal income tax on any dividend payments. C-corps also have more complex formation and compliance requirements.
S-Corporation (S-Corp)
S-corps are a variation of the traditional corporation that elects to be taxed under Subchapter S of the Internal Revenue Code. S-corps avoid double taxation by passing corporate income, losses, deductions, and credits through to shareholders, who report the flow-through of income and losses on their personal tax returns. To qualify, companies must meet certain ownership and other requirements.