As a Georgia lawyer offering legal advice, the following are the common options for structuring a small business in Georgia:
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Sole Proprietorship - This is the simplest form of business structure and is suitable for small, one-person businesses. You will have complete control and ownership over the business, but any debts or legal suits against the business are personal liabilities.
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Partnership - This type of business structure is suited for businesses with two or more partners. The partners share the profits, losses, responsibilities, and debts of the business according to their shares in the partnership agreement.
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Limited Liability Company (LLC) - This business structure is a combination of a corporation and a partnership. The LLC is taxed like a partnership, but its owners have limited liability protection like a corporation. Members of the LLC have the flexibility to choose between paying taxes as individuals or a corporation.
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Corporation - This business structure is suitable for larger businesses with more than four shareholders. The corporation is a legal entity separate from its shareholders, which means the shareholders are not personally liable for business debts or legal suits.
It is essential to consider the size, nature, and goals of your business when selecting a business structure. There may also be legal, tax, and governance issues that you should consider before choosing the most suitable legal entity.
It is advisable to seek legal guidance and advice from a licensed attorney when deciding which business structure to use. A lawyer can help you understand the requirements, structural limitations, and tax implications of each structure so that you can make an informed decision. Additionally, a lawyer can provide assistance with setting up your business structures, drafting organizational documents, and managing regulatory compliance.
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