One of the most common questions for professionals starting their own practices is how to form a business entity. It’s a fundamental, bread-and-butter issue but an important one. Knowing what kind of entity you need can impact your tax liabilities and act as a veil of protection around your personal assets.
Anyone can start a business, but unless you properly form a separate legal entity, there is no separation between you–the person–and you–the business. This is when the benefits of forming a business association come into play.
In this episode of Private Practices in Maine, Michael outlines the benefits of forming your practice, the two most common types of incorporation people use, and why it can help create a more efficient business model.
If you’re considering starting your own practice and wondering whether you should form your business, this episode is for you.
In this episode, you will hear:
- The confusion surrounding forming a business entity for a practice
- Why you should form a business association and how it can protect your personal assets
- The two basic types of business associations most commonly used in Maine and what their differences are
- How an LLC can be structured to suit almost any legal arrangement and can be changed and scaled as the business changes
- How a corporation differs from an LLC
- Tax considerations for business entities
- How to choose the type of tax law to apply to your corporation and the most common setup Michael sees
- The importance of having good relationships with your accountant and lawyer
- The tax code and state business association statutes are two separate sets of rules
Resources from this Episode
Website – malloyfirmmaine.com
Phone – (207) 333-6700
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