What stucture should I go with when starting my business?

UPDATED: Oct 1, 2022

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What stucture should I go with when starting my business?

I want to start a fitness training company with future of adding apparel, coaching,

training, and gym. Under my brand name.

Asked on June 26, 2018 under Business Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

A limited liability company or LLC:
1) You want an LLC or corporation to protect you from personal liabilty for business debts or lawsuits: without an LLC or corporation, if your "business" violates a contract or lease, or if someone is injured by or during your training, *you* are personally liable, but with an LLC or corporation, only the business, and not you personally, are liable or would have to pay any debts or judgments. Having an LLC or corporation protects your house, your car, your savings, etc.
2) To avoid "double taxation" (profits being taxed once at the busienss level, then again when you take them out of the company), you want "pass through" or "disregarded" entity--that means a subchapter-S corporation or an LLC where you elect "disregarded" or "partnership" tax treatment.
3) An LLC involves somewhat less paperwork and formalities than a corporation, even a subhchapter-S corporation--it is preferably for sole owners or small businesses for that reason.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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