It’s important to select the appropriate type of entity in order to meet your specific goals and to comply with state and federal guidelines. Selecting the correct entity type determines how your business will operate and handle situations involving taxes, liabilities, etc.

There are several different entity types to choose from, which include:

· Partnership

· Corporation

· Limited Liability Company (LLC)

Choosing your business entity without the counsel of a business attorney could spell trouble for you in the future. It’s crucial that you research and consult with an attorney to ensure that you’re selecting the most appropriate entity type for your business.

Protecting your personal assets is essential and there are several ways you can safeguard them. First, it is important to understand and comply with all state and federal guidelines. Choosing the right type of business entity and setting it up correctly is extremely important. Business owners should also utilize liability waivers when appropriate, especially when your business poses any type of risk to your employees or customers. Another action business owners should take is to constantly review employee situations and update handbooks and policies. Of course, it’s also essential to review all contracts, especially with your attorney, before signing them.