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Choosing Between Different Types of Corporate Entities

Oct 11, 2020

Are you incorporated?

Businesses need a limited liability entity, such as a corporation, LLC, or LLP. Without a limited liability entity, your personal assets could be at risk.

For example, let’s say you operate a restaurant, and a patron slips and falls and is severely injured. Even if the claim wasn’t your fault, you could still be sued. Insurance may cover some of this liability, but if the insurance policy is not adequate enough to pay it, or there is a coverage issue (or a missed payment), and the business can’t pay what is owed, your personal assets could be taken if you are not incorporated, such as your house, your bank account, etc.

Getting limited liability helps make sure your business problem doesn’t become a personal problem. The first step is to hire a San Jose corporate attorney.

Protecting And Growing Your Business

Everyone thinks that their business is protected, but any business can be sued. After all, if businesses could prevent being sued, don’t you think the tobacco companies, Wal-Mart, or Microsoft would have figured it out by now? Call Nick Heimlich for more information regarding the importance of corporate insurance in San Jose

Being incorporated could make the difference between a lawsuit averaging out to something like a standard surgery or a heart attack. Neither are pleasant, but one is much better than the other.

There are many typical entities you can choose from: a C corporation, an S corporation, a limited liability company (LLC), or a limited liability partnership (LLP). While each type of entity can provide owners with limited liability for business obligations and debts, there are certain differences to be aware of.

  • C Corporation This corporate structure is the most common entity. C-Corporations are taxed at two levels, the entity level and for any distributions or payroll, etc. This is also called double taxation.
  • S Corporation If you are a relatively small business, you may consider incorporating it as an S corporation. An S corporation is a corporation where profits are taxed mainly at the personal level although there is a tax at the entity level, but it is much lower than the tax rate for a C Corporation.
  • Limited Liability Company LLCs are not subject to all of the corporate formalities required of corporations.
  • Limited Liability Partnership Limited liability partnerships are often used for professionals such as law firms or accounting firms and have mostly limited partners and generally 1 general partner who has unlimited liability. Often that General Partner is a corporation or LLC, which limits the liability further.

Corporate law varies by state, learn where is the best state for your company to incorporate in.

Ready To Protect Your Business?

Get a reliable and substantial operating agreement in place and protect yourself from creditors, bankruptcy, and taxes. Planning and finding the most cost-effective and efficient measures for your business is what we are trained and experienced to do. 

Call Today To Schedule Your Appointment

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I recently received legal advice from Nick and he was very professional and easy to talk to. He gave us great advice and I would definitely use him again if needed. Thank you Nick!
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This was the first time ever needing a lawyer for something, I was a bit frantic and overwhelmed with everything going on, but Nick and his team were very professional and honest, and made me feel at ease about my case. They were even professional and cool with the opposing attorney even though she was being unprofessional at times. In the end, they were able to settle my case and bring me a satisfying outcome. If you're ever in a bind and need a business lawyer, I highly recommend Nick and his team.
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I am an officer at a company that provides B2B Demand Generation services to marketing and sales. Over a number of years, I've worked with Nick Heimlich for legal services. He has advised me well and helped to represent the company in multiple legal disputes including in Court. I am very satisfied with his work and highly recommend him.
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I needed some legal consultation and per recommendation I received, I have approached Nicholas. He got back to me quickly and provided great service, he was patient, professional and knowledgeable. His advise is much appreciated, it cleared the situation, draw the next steps to follow and placed my mind to peace .I would definitely recommend his service.
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Mr Heimlich was very professional kind and knowledgeable when I give him a call. I was calling to hire an attorney for an tenant and landlord dispute. I had a particular issue that Mr Heimlich took time to completely listen to me. unfortunately the area I needed help was not an area that Mr Nick practiced. but he was not hesitant to give me some leads and direct me to the right place. he's a man of character and cares about what he does, I can only imagine his level of excellence in his area of expertise. he's a man of great character and I would recommend him for anyone to give him a call and talk to him. thank you very much Nick. thank you for caring .
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Nick was very helpful when I needed assistance dissolving an LLC. Not only did he create the appropriate documentation, but he educated me on the process. His guidance was invaluable, and everything resolved smoothly. I would certainly use his services again in the future.
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My family cannot thank Nick enough. We needed a business litigation attorney for a lawsuit that was going to trial, he not only took the time to understand the complexities of the case but was able to convey that to the judge. He was able to get us amazing results. Hands down the best attorney we have ever worked with.
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