Which entity type is right for your company?
Posted on Monday, November 9th, 2009 at 5:20 am
When an invididual or group of people decide to form a business, they often must choose an entity type. On the general level, the people starting the business will either decide to form a partnership or corporation.
If they choose a partnership, then they have the advantage of being a pass-through entity, which means that income taxes pass through to the personal level. However, depending on the type of partnership, some of the partners may be liable for debt obligations.
If they choose a corporation, then they will all have the benefit of limited liability. However, their business activities will likely be taxed twice, once on the corporation level and once on the individual level for dividend receipts.
If your business is having trouble deciding an entity type, contact the Iowa business formation lawyers of LaMarca Law Group, P.C., at (877) 327-2600.