Choosing a form of a legal entity

Businesses choose to form a company based upon a business plan, but many business owners are unaware what business entity should contain the assets and perform the services of their business. Should a professional use the same entity as an insurance company? Should a restaurant use the same entity as a land developer? What provides the best legal protection? What is the best tax or cash flow protector? Am I a solo operator or do I have many partners? Do I have any foreign investors? These are questions which should be asked as they affect the choice of entity.

For many private small businesses choose between an LLC or an S Corporation. Nevada LLC’s and Nevada Corporations have statutes for “charging orders” only to better protect the assets of the entity from creditors of the owners of these entities. In most respects, Nevada entities offer superior flexibility and asset protection to other state entities. Each of these entities offer the advantages of flexibility and pass through taxation. Depending upon the planning, you may also lawfully reduce payroll tax contributions. They provide excellent opportunities to preserve your business which you the business owner hope to continue and grow in the future.