What is an Entity? How Can it Protect You?
An entity is a separate legal being, such as a corporation, Limited Liability Company (LLC) or Limited Partnership (LP). All provide much greater asset protection when compared to a sole proprietorship or general partnership. It is the ‘separateness’ of an entity which protects you – the entity’s owner – from unlimited personal liability. Without that separation, if an angry customer sues you, any assets you own such as your house, car or bank account can all be taken should a judgment be found against you. An entity is a business organized according to state law to limit the liability of the owners.
An entity can’t protect you if it is not set up right at the start. Furthermore, it can’t protect you if you don’t properly maintain your entity over the long term.
Entity Formation is Our Specialty
Corporate Direct specializes in entity formation and entity maintenance. Our goal is to protect you at the start and protect you into the future.
Choosing the correct entity is one of the most important decisions you can make. This one decision will dictate how you prepare your taxes, how you keep your books, how much of your business’s income you keep and how much you don’t. It will dictate your profits and losses, the financial security (and safety) of your family, maybe even your health and happiness.
Do not take the decision of which corporate entity you choose lightly. There is no part of your business that will not be affected by it.
For more information please see my book “Run Your Own Corporation.” If you’re looking to form an entity and unsure of what the best choice is for your situation, our incorporating specialists are here to help.For more information or assistance please call 1-800-600-1760.