Registering a Business
At The Law Offices of Rathi and Associates, we work with business owners to select the form of business entity that is right for you. You can choose from many business categories such as a sole proprietor, partnership, corporation, or any other. Once you have decided on a business type, your business has to be legally registered with the state of Michigan. We with your accountant, insurance advisor, and other financial professionals to make sure that the type of business you select fits your needs.
An important factor that will influence your decision as to what type of business entity to select is the number of employees that you have. A one-person business might elect to register as either a sole proprietor, independent contractor or a Subchapter S corporation. If you are partners with one or two other people, a partnership or limited partnership may provide the most benefits. If you have several or many employees you may want to offer benefits like a retirement plan and operate with limited personal financial liability, a full corporation may be the way to go. No matter what the facts of your individual business situation, the experienced business registration attorneys at The Law Offices of Rathi and Associates are here to help.
As previously mentioned, personal financial liability is an important consideration when selecting a business type. Retirement plan qualification, income tax considerations and other important factors need to be analysed. Some forms of incorporation, suitable for one or two person company through a Subchapter S corporation may help you to save on federal income taxes by allowing you to pay yourself in dividends rather than income that could be subject to the social security tax calculation. The drawback may be that the Sub S corporation doesn’t offer the same degree of pre-tax retirement plan benefits as other types of business entities. Some business types can help you to save the maximum for retirement but force you to declare other income as ordinary, taxable income. Still others can shield your personal assets from lawsuits or business creditors as if the corporation was an entirely different person. Personal assets such as real estate can be transferred to a corporate entity and pledged as collateral to finance your business. The same goes for a car, boats or other assets that could be transferred to the corporation or purchased by the corporation for business use.
If you need to incorporate your business, register your business or simply write a partnership agreement, the experienced and knowledgeable business law attorneys at The Law Offices of Rathi and Associates can help.