The decision to start a business is a big one and can have drastic legal and financial implications on the rest of a person’s life. That is because if a business is not set up correctly, any liability that the business incurs can directly impact the financial health of the individual who was responsible for the start-up. For this reason, it can benefit Louisiana residents to get the help of business law attorneys when they are preparing to select the appropriate business structures for their new entities.
Businesses can take on different formats, from sole proprietorships to corporations. For example, a sole proprietorship is a business that is closely tied to the personal liability of the person who opened the entity for business. A corporation is a business that is fully its own legal entity and leaves little to no connection to its original founders.
Between sole proprietorships and corporations are other business structures, like limited liability companies, partnerships and others. Depending upon the goals of a business owner, if they are opening their business with others, among many other considerations, it may take time and research for an individual to fully understand how best to structure the format of their new entity.
Failing to make a full inquiry into the many differences that exist between possible business structures can leave new business owners fighting to keep their doors open and to protect their personal wealth if claims are brought against their entities. A business law attorney can attempt to help protect a new business owner from these problems and can offer guidance to those who wish to learn more about business options in Louisiana.