Setting Up Your Entity and Corporate Structure

In today's economy, the choice of corporate or entity structure is a crucial decision although most business owners fail to understand the importance of their corporate or business structure. The appropriate business or corporate structure is vital for several reasons. The first reason is liability protection. Unfortunately, most business owners fail to properly structure their ownership of their corporation or LLC. For example, John Smith owns ABC Trucking, LLC and is a member of his LLC in his personal name along with another business partner, Jack Johnson. First, John Smith should not in many instances because a member of his LLC in his personal name. The first risk is liability exposure from items such as unpaid payroll taxes, business and vendor disputes, and other creditor concerns. Obviously, most small business owners do not foresee having creditor issues. In this econonmy, small business owners are filing bankruptcy because of their lack of proper corporate structure. Incorporating your membership interest of an LLC is a better way to structure your business interest. The business purpose is to alleviate liability concerns in case you must file bankruptcy. Often times, a creditor will sue your business and you in your personal name. The second reason is growth purposes. An LLC versus a Corporation offers one the opportunity to utilize the flexibility of an LLC, which is critical if you want to add key employees or possibly business owners. In essence, the LLC is a much more flexibile business entity and offers more liability protection.

Sean Robertson is managing Partner of Robertson Law Group, LLC, which is a asset protection, litigation, and corporate law firm. Sean Robertson can be reached at either (312) 498-6080 or (630) 364-2318. Robertson Law Group, LLC has a downtown Chicago and Naperville location. Robertson Law Group, LLC services Cook, Dupage, Will, Kane, and Kendall Counties.

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