The most commonly used small business option is a limited liability company. An LLC can be a one-person entity. An LLC is likely the most low maintenance option for someone who’s just trying to get started. This is often ideal as the high flexibility allows a new business owner to have more time to focus on growing their business than dealing with red tape or compliance issues.
You can also form a corporation as another option for your small business. There are different variations of corporations. An S-Corp or C-Corp typically reserved for more advanced business partners who either have an accounting background or are working in tandem with an accountant. Corporations are more high maintenance as they require annual meetings and keeping minutes.
Finally, professional limited liability companies are typically reserved for licensed professionals such as accountants, doctors, and attorneys.
What Proactive Measures Should We Have In Place To Protect Ourselves From Potential Litigation?
There are various actions we can take to protect ourselves from litigation or other issues that may arise. At the most basic level, having a business entity can protect you from potential litigation (in terms of protecting personal assets).
What Pitfalls Can A Small Business Attorney In Mississippi Help Me Avoid While Forming My Business?
It’s essential to make sure you haven’t left out any of the most basic steps in forming a business. Anybody can go online to the Mississippi Secretary of State’s website and form an LLC. You just pay $50 in a service fee and you have an LLC.
But if you don’t have an operating agreement behind that LLC, then you really don’t have any liability protection. If litigation were to later come up and you’ve not gone through the basic steps, you’ve kind of wasted your time forming the LLC.