Legal Tip of the Week: Forming an LLC or S-Corp

Legal Tip of the Week: Forming an LLC or S-Corp

I get asked often by owners of small businesses why they should bother forming an LLC or incorporating as an S-Corp. Well, let's break some of them down!

Tax benefits

As we all know, running a business can come with its fair share of tax burdens. Having an attorney create an LLC or S-Corp can significantly help relieve these pressures. Both entities offer "pass-through taxation," which means that the business itself doesn't pay taxes; instead, the profits and losses flow through to the individual owners. This can lead to potential tax savings and simplification of the tax reporting process.

Liability protections

One of the most significant concerns for any business owner is liability. With a sole proprietorship or partnership, your personal assets can be at risk if the business encounters legal trouble or debt. With an LLC or S-Corp, you create a legal separation between yourself and the business. This means that your personal assets, such as your home or savings, are typically shielded from business liabilities, offering you peace of mind and protecting your hard-earned assets.

Contact us with any questions about forming an LLC or S-Corp

At Hoffman Law Offices, we understand the complexities of business structures and the importance of making the right choices for your specific needs. We can guide you through the process of forming an LLC or incorporating as an S-Corp, ensuring you reap the maximum benefits for your business while minimizing risks.

Contact Hoffman Law Offices, LLC at (205) 837-5791 or whoffman@hlawoffices.com today to schedule a consultation!