Business Organization Law
Whether you're starting a business for the first time or a seasoned entrepreneur, choosing the right organizational structure is crucial.
How you structure a business impacts personal liability and taxes, as well as day-to-day operations.
The attorneys at Froerer & Miles in Ogden, UT, have the expertise to create a legal foundation that protects and grows your business.
Are You Looking to Build Your Dream Business? Our Business Law Experts Can Help
If you are looking to take control of your future by building your dream business, the lawyers at Froerer & Miles in Ogden, UT, can help. We work with you to turn that dream into a success, starting with the fundamentals: selecting the ideal legal framework. Our lawyers have the expertise to help select a business organization with the right mix of benefits to grow your company while protecting you from personal liability and excessive taxes.
Serving Ogden, Layton, Brigham City, and Surrounding Communities
For More Than 60 Years
How Much Does It Cost To Start a Business?
At Froerer and Miles, our typical business organization set up pricing is very competitive, which includes the filing fee with the Department of Commerce, the Articles of Incorporation or Certificate of Organization, the Bylaws or Operating Agreement, and the Organizational Minutes.
However, for a more precise cost, we offer a free consultation with one of our lawyers to go over your business plans. In addition to getting a firm price, a meeting allows you the opportunity to get to know us first before making any commitments.
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"They were extremely professional and handled all of my concerns beautifully. The thing I love about them is how personable and friendly they are ... They helped me in some matters with my business and made everything comfortable for me as we figured things out." Reid Chapman
What Business Structure Is Right for My Company?
The First Step...
One of the first decisions you'll face after deciding to start a business is choosing the right type of "business organization." The business organization is the legal framework for your business and it has far-reaching ramifications.
The structure of your company determines your personal liability, tax exposure, and options for growing your business. The experienced lawyers at Froerer & Miles in Ogden, UT, work closely with you to understand both your business and your future goals in order to select the optimum framework for success under Utah law.
Questions to Ask Yourself ...
Common questions in deciding what type of business operation is a good fit include:
- Will you operate the business yourself or have partners?
- How much personal liability are you comfortable with?
- How much flexibility do you want in the organization of your business?
- How comfortable are you with paperwork, regulations, and complex tax laws?
LLCs: A Popular Small Business Option
The limited liability company (LLC) is a popular business structure for small businesses in large part because they are easy to form and flexible. It balances many of our clients' needs for tax benefits and liability protection and is among the most common business entities in Utah and across the United States.
An LLC can be a good choice for medium- or higher-risk businesses, for owners with significant personal assets needing to be protected, or for owners wanting to pay a lower tax rate than they would as a corporation.
PLLCs & Other Business Entities
Closely related to the limited liability company is the professional limited liability company (PLLC), which is either a corporation or a limited liability company for professional services. This business entity is often used by physicians, public accountants, and veterinarians, to name a few.
Both LLC and PLLCs are more flexible than other corporate structures and offer key benefits that make them a good option for small business owners. Other legal entities to consider include:
- Sole Proprietorships
- C- and S- Corporations
- Non-profit Corporations
Need Help Starting a Business? Get Answers at a Free Consultation
By understanding your business goals, the business attorneys at Froerer & Miles in Ogden, UT, can guide you in selecting a business structure that will help propel your business forward while avoiding cumbersome requirements that tie you down.
Our business attorneys understand the finer points of selecting business structures. In addition to LLCs and PLLCs, we have experience creating sole proprietorships, partnerships, and S-Corporations and C-Corporations.
To better understand the pros and cons of each, request a free consultation with one of our lawyers and learn more about forming a business in Utah while also spending some time getting to know us.
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Terrific law firm. Responsive and timely with any requests that we've had. Consummate professionals that can handle any legal issues you may have. Highly recommend.View on Google
I've worked with this Law Firm and Zane Froerer for several years. One of the best attributes that they have is they are big enough to handle most legal matters but small enough to still give the appropriate attention to their Clients. Zane and his staff of Corrine and Lisa do an excellent job of helping you with your legal matters but not charging you an arm and a leg. Overall just a great firm to work with!View on Google
Why Are LLCs So Popular? The Benefits of a Limited Liability Company
Limited Liability Protection
Forming a limited liability company will help protect your personal assets from the LLC's debts or lawsuits, providing there is no fraud or criminal behavior. PLLCs also provide personal asset protection, though liability protection differs from a traditional LLC in that it is not shared across the company. We work closely with clients so they understand these nuances in liability law.
Profits in an LLC or PLLC "pass through" directly to the owners, who report their share of the profits on their individual tax returns. This is a boon for many owners because it means the profits are only taxed once. In contrast, a C-corporation's profits are taxed once at the company level and then again on the owners' individual tax returns.
Limited liability companies have a simple structure and are relatively easy to form, for one person or a group of people. And unlike C-corporations, LLCs do not need to assign formal officer roles, hold annual meetings, or record company minutes and resolutions.
There are few limitations in how you structure ownership and management for a limited liability company. The company can be owned by a single individual or have several owners. If there are several company owners, management can be shared among all members or a manager can be appointed.
Credibility is an important commodity for any business. The LLC format is viewed as a credible business by both customers and credit institutions. The structure also allows an LLC to build a credit history that will help it get access to lines of credit and apply for loans.
We Don't Just Build Businesses.
We Build Relationships.
Attorneys at the law practice of Froerer and Miles are experts at the nuts and bolts of business organization law in Utah and can help you understand how nuances in the law affect you. But what sets the practice apart is the willingness of our attorneys to set aside time to listen to clients' needs.
A Closer Look at ... Other Business Formats
Partnerships are businesses owned and operated by two or more people who agree to share responsibilities and profits. Partnerships can be either general partnerships or limited liability partnerships.
- In a general partnership, partners share management, responsibilities, financial and legal liabilities, and profits.
- In a limited liability partnership, owners can either be a general partner that owns and operates the business while assuming liability for debts and liabilities. Or they can be a limited partner, who has no control and assumes none of the liability, essentially acting as an investor.
C- and S-Corporations
A corporation is a form of business organization that separates the business from the owners. In a corporate structure, the company has the power to do most of the things a person would do, such as hire employees, trade goods, and enter into contracts.
- C- and S- corporations offer limited liability protection so that owners are not personally responsible for business debts and liabilities. They have shareholders, directors, and officers. They also follow corporate formalities and obligations, such as adopting bylaws, holding meetings, and filing annual reports.
- For small businesses weighing the pros and cons of C- and S-corporate structures, the choice usually comes down to how they want to be taxed. C-corporations are taxed at the corporate level with the income distributed to owners taxed again at the individual level. S-corporations are pass-through taxation entities with profits and losses reported on the owners' personal tax returns.
We Help You Stay Compliant
Whether you form an LLC, a partnership, or a corporation, we can help you meet your legal obligations at every stage.