Our business law practice encompasses entity formation and accounting matters for most forms of organizations such as limited liability companies (LLC), partnerships, and corporations.
The most common types of business organizations include:
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- Sole Proprietorship – you are the only owner of the business
- Partnerships can take the form of a regular partnership, a general partnership, limited partnership or limited liability partnership
- Corporation – the default form of a corporation is a C Corporation (also known as Subchapter C Corporation). Smaller corporations typically file for the S Corporation (Subchapter S) tax election so they are not double taxed
- Limited Liability Company (LLC) – a hybrid formation that provides personal liability protection similar to a corporation, with the flexibility and tax advantages of a sole proprietorship or partnership
Note: A business is different from a hobby in that a profit is expected from a business. This distinction is important for tax purposes because losses from a business are tax deductible, whereas losses generated from a hobby are not.