P. K. Fontana - Choosing the Right Legal Form of Business: The Complete Guide to Becoming a Sole Proprietor, Partnership, LLC, or Corporation

Choosing the Right Legal Form of Business

The Complete Guide to Becoming a Sole Proprietor, Partnership, LLC, or Corporation

By PK Fontana

Foreword by Kyle J. Lavender, Cofounder INCFILE.COM LLC

Choosing the Right Legal Form of Business: The Complete Guide to Becoming a Sole Proprietor, Partnership, LLC, or Corporation

Copyright 2010 Atlantic Publishing Group, Inc.

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Phone 800-814-1132 Fax 352-622-1875

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SAN Number: 268-1250

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Requests to the Publisher for permission should be sent to Atlantic Publishing Group, Inc., 1405 SW 6th Avenue, Ocala, Florida 34471.

Library of Congress Cataloging-in-Publication Data

Fontana, P. K.

Choosing the right legal form of business : the complete guide to becoming a sole proprietor, partnership, LLC, or corporation / by P.K. Fontana.

p. cm.

Includes bibliographical references and index.

ISBN-13: 978-1-60138-301-3 (alk. paper)

ISBN-10: 1-60138-301-0 (alk. paper)

1. Business enterprises--Law and legislation--United States. I. Title.

KF1355.F66 2010

346.73065--dc22

2009048314

LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: The publisher and the author make no representations or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation warranties of fitness for a particular purpose. No warranty may be created or extended by sales or promotional materials. The advice and strategies contained herein may not be suitable for every situation. This work is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If professional assistance is required, the services of a competent professional should be sought. Neither the publisher nor the author shall be liable for damages arising herefrom. The fact that an organization or Web site is referred to in this work as a citation and/or a potential source of further information does not mean that the author or the publisher endorses the information the organization or Web site may provide or recommendations it may make. Further, readers should be aware that Internet Web sites listed in this work may have changed or disappeared between when this work was written and when it is read.

A few years back we lost our beloved pet dog Bear, who was not only our best and dearest friend but also the Vice President of Sunshine here at Atlantic Publishing. He did not receive a salary but worked tirelessly 24 hours a day to please his parents.

Bear was a rescue dog who turned around and showered myself, my wife, Sherri, his grandparents Jean, Bob, and Nancy, and every person and animal he met (well, maybe not rabbits) with friendship and love. He made a lot of people smile every day.

We wanted you to know a portion of the profits of this book will be donated in Bears memory to local animal shelters, parks, conservation organizations, and other individuals and nonprofit organizations in need of assistance.

Douglas and Sherri Brown

PS: We have since adopted two more rescue dogs: first Scout, and the following year, Ginger. They were both mixed golden retrievers who needed a home.

Want to help animals and the world? Here are a dozen easy suggestions you and your family can implement today:

• Adopt and rescue a pet from a local shelter.
• Support local and no-kill animal shelters.
• Plant a tree to honor someone you love.
• Be a developer put up some birdhouses.
• Buy live, potted Christmas trees and replant them.
• Make sure you spend time with your animals each day.
• Save natural resources by recycling and buying recycled products.
• Drink tap water, or filter your own water at home.
• Whenever possible, limit your use of or do not use pesticides.
• If you eat seafood, make sustainable choices.
• Support your local farmers market.
• Get outside. Visit a park, volunteer, walk your dog, or ride your bike.

Five years ago, Atlantic Publishing signed the Green Press Initiative. These guidelines promote environmentally friendly practices, such as using recycled stock and vegetable-based inks, avoiding waste, choosing energy-efficient resources, and promoting a no-pulping policy. We now use 100-percent recycled stock on all our books. The results: in one year, switching to post-consumer recycled stock saved 24 mature trees, 5,000 gallons of water, the equivalent of the total energy used for one home in a year, and the equivalent of the greenhouse gases from one car driven for a year.

Dedication and Acknowledgements

Dedication

As always, my work is dedicated to Fred, Rudy, and Katie, with deep appreciation to Clara and J.E.

Acknowledgements

Thanks go out to my editor, Erin Everhart, for patiently answering my many questions about this project and for providing such constructive and timely feedback. And thanks to Amanda Miller, who gave me this opportunity.

Thanks also to the many people who contributed their own stories, found in the case studies throughout this book. Many of those who contributed to the case studies have experienced business failure as well as success.

We are grateful that they were willing to share all of their experiences so that others may learn the valuable lessons that they did along the way.

A special thanks to the organizations and individuals who spend their time helping others who are launching businesses or who are developing growth plans for their businesses. There are many valuable resources, many of which are listed in this book, to help guide you in starting and growing your business.

To those for whom this book is written, thank you for reading it. I trust it will be a helpful guide to help you get started on the right foot in your new business venture.

Foreword

When it comes to starting and running a business, the selection of the type of business structure for your company is one of the first and most important decisions you will make. Many up-and-coming entrepreneurs find themselves unsure as to which structure is the most suitable for their needs, and the topic can seem intimidating, even overwhelming, to some. In addition, once the proper business structure for your company has been determined, the company still needs to be properly formed and operated. Many individuals simply have no idea where to begin or where to turn for good information. In her book Choosing the Right Legal Form of Business: The Complete Guide to Becoming a Sole Proprietor, Partnership, LLC, or Corporation , PK Fontana takes the subject well in hand and presents a great deal of important and relevant information in a logical, organized, and highly readable fashion. Anyone, regardless of their level of business experience, will have their knowledge and understanding of the topic greatly enhanced after reading this book.

Many people think that setting up a company is too complex for them to handle and that it may even require the services of an attorney. Nothing could be further from the truth. With this book as a resource, anyone will be well-equipped to handle just about any issue that arises. With this book at your side, you will find that the process is far less daunting than you thought and well within your grasp. You will learn what documents need to be prepared, where and when they need to be filed, and the ongoing compliance requirements, both internal and external, to keep your company up-to-date and in good standing. You will also gain the necessary knowledge and understanding required to decide if and when it is appropriate to consult with an attorney.