When do you establish a corporation or LLC when starting a new company?
When you’re making money.
If you haven’t made any money, don’t waste your time.
When you're starting a business, you have many different things to consider. You need to research what type of entity you'll be creating and when the best time is to set up that entity. You need to make sure your legal paperwork is in order and file the appropriate documents with the state or federal government. First, it's important to know what entity type is right for your business. An entity type is a classification for businesses that helps determine how taxes are handled and how liability protection works for each business. An LLC (limited liability company) is a flexible choice for small businesses, but it does have its limitations.
One of the most important factors for determining the type of entity you create is making sure your business will succeed at reaching its goals within the restrictions of that entity. If a corporation or an LLC gives you more flexibility when it comes to taxes, then choosing one over another is a matter of what will be most beneficial to your business in the long run. If you want to do business as an individual, then that's another decision you'll have to make based on how much risk you want to shoulder personally and whether it makes sense financially to operate as a sole proprietor rather than as an LLC or corporation.
Call this law firm when you need a free business consultation. Good luck!
Parklin Law LLC
5772 West 8030 South, Unit N206
West Jordan, UT 84081
(801) 618-0699
https://parklinlaw.com/business-law-in-utah/
