Let Stephen Jurman from Pittsburgh put your mind at ease with a few answers.
Need more details? Call and schedule an appointment at 412-262-2575.
Are there different kinds of partnerships allowed by Pennsylvania Law?
Yes – there are several types of partnership in the state of Pennsylvania. We can discuss which one is best for your situation and business goals.
I am an entrepreneur looking to start up my own corporation. Can you help me?
Yes! A business owner must be aware of the main business organization forms, their characteristics, and the law that governs their management and formation.
The Sole Proprietorship is created when an owner simply begins business. It is simple and cheap to form and is usually chosen by one-person businesses. The owner owns all of the assets. The owner also has unlimited personal responsibility for business liabilities. The owner is taxed on all income from the business at applicable individual tax rates.
A General Partnership is formed when two or more persons carry on as co-owners of a business for profit. Each general partner participates in the management, owns the assets, and shares the profits and losses. Each general partner is personally liable for business related obligations. General partners are taxed on their individual tax returns.
A Limited Partnership differs from a general partnership in that there is at least one limited partner who contributes capital, but does not have substantial management control. The limited partner has limited liability to the extent of their capital contribution to the partnership.
A Limited Liability Company combines elements of partnerships and corporations. LLCs must file articles with the state. As in a limited partnership, the owners only risk losing money that has been invested into the LLC. Only LLC assets are used to pay its debts. However, an LLC is not a separate taxable entity, and LLC owners report profits and losses in their individual tax returns.
A Corporation is a separate legal and taxable entity. One must comply with statutory formalities to set up a corporation. Barring certain exceptions, the owners of the corporation are protected from the corporation’s liabilities.
What factors should be considered in choosing the type of business form for my business?
Although there are many important things to think about when choosing a business type, some of the main considerations include tax treatment, how you intend to capitalize the business, whether you plan to issue stock and trade it publicly, how you intend to structure the management of your business and issues surrounding the liability of the business owners just to name a few.
– Damage awards in lawsuits
– Tax penalties
– Back wages and benefit payments
My business is failing. Can bankruptcy help?
Bankruptcy may be a good solution in dealing with the debts incurred for the business. In general, if you guaranteed any of the business debt, you, the business owner will need to file for personal bankruptcy. The majority of the time, it is better for a business to simply dissolve rather than file bankruptcy.
How do I form a business corporation?
A business corporation may be formed in the State of Pennsylvania by filing a Certificate of Incorporation pursuant to Section 402 of the Business Corporation Law. We can help you with the details!