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If you begin operating a business without incorporating
you run the risk of exposing your business assets AND your personal assets for all debts and claims against the business. In addition, many of
the expenses of starting and running the business may not be
deductible if the business is a sole proprietorship but
may be deductible if the business is an entity. This is also
the case if two or more people run a business as a general
partnership or a joint venture. In order to maximize the tax
benefits and to protect your personal assets from the risks of the
business, some form of ownership “entity” needs to be utilized.
The choices available in Texas and most states include:
- Corporations "s" or "c"
- Limited Partnerships, Limited Liability Partnerships
- Limited Liability Companies
For Physicians and other medical Professionals:
- Professional Associations
- Professional Limited Liability Companies
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For CPAs, Attorneys
- ProfessionalCorporations
- Professional Limited Liability Companies
Our legal services inlcudes counseling on the pros and cons of the
various entities as well as the turn-key creation of those entities.
Because there are income tax reasons that impact our clients
decisions to form specific entities to run their businesses, as well
as asset protection reasons, we like to work with our client’s CPA
and other professionals as a “team” to provide our clients with all
of the information required when beginning business formation and
planning in order to determine which of the entity provides the
client with the best tax advantages and the most efficient business
model.
There are additional issues which arise in connection with two or
more people associated in a business and the contingent possibility
that one of the associated owners dies or becomes incapacitated.
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Does the business have a contingency plan?
A buy-sell agreement?
An employee retirement plan?
Do you, as the owner, have a Health Savings Plan or a Medical
Reimbursement plan?
The IRS has begun to look at your corporate entity and its
compliance issues. Are you in compliance?
All of these issues can impact the success of your business
venture and the business entities ability to protect your assets.
Call today to get a complimentary annual check-up!
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