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Business
Entity Type

The way businesses operate can differ in many ways – and for a variety of reasons.

To give your business the best possible start, in terms of both risk and opportunity, you need to establish an entity that's most appropriate for your purposes and circumstances right from the outset.​

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Our corporate law teams advise a variety of

business owners and managers, from sole traders looking for the easiest and most cost-effective way of running their business, to groups of individuals seeking the most efficient means of working together. Yours may be an organisation wishing to grow its corporate group nationally and internationally; or a group that wants to make a philanthropic difference in the community.

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We're extremely well versed in dealing with all types of entities, from private and public companies, to social enterprises, charitable and not-for-profit structures, and trusts and foundations. We advise businesses on employee status, audits and reporting, and any potential liabilities.

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Whatever your needs, we can advise on the most appropriate entity type, and draft suitable constitutional documentation and agreements to minimise business risk – and ensure your business fulfils all your ambitions.

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To get the most out of your small business, choose the right structure. Selecting the right type of company or corporation for your new business helps maximize your chances of financial and operational success.

Common types of business structures and corporations include C corporations, limited liability companies (LLC), partnerships, S corporations, and sole proprietorships. Learn more about each type of business or corporation:

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LIMITED LIABILITY COMPANIES (LLCs)

  • Independent legal structures separate from their owners.

  • Help separate your personal assets from your business debts.

  • Taxed similarly to a sole proprietorship (if one owner) or a partnership (if multiple owners).

  • No limit to the number of owners.

  • Not required to hold annual meetings or record minutes.

  • Governed by operating agreements.

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C CORPORATIONS

  • Independent legal and tax structures separate from their owners.

  • Help separate your personal assets from your business debts.

  • No limit to the number of shareholders.

  • Taxed on corporate profits and shareholder dividends.

  • Must hold annual meetings and record meeting minutes.

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S CORPORATIONS

  • Independent legal and tax structures separate from their owners.

  • Help separate your personal assets from your business debts.

  • Owners report their share of profit and loss in the company on their personal tax returns.

  • Limits on number of shareholders, who must be U.S. citizens or residents.

  • Must hold annual meetings and record meeting minutes.

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PARTNERSHIPS

  • Partners remain personally liable for lawsuits filed against the business.

  • Usually no state filing required to form a partnership.

  • Easy to form and operate.

  • Owners report their share of profit and loss in the company on their personal tax returns.

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SOLE PROPRIETERSHIPS

  • Owner remains personally liable for lawsuits filed against the business.

  • No state filing required to form a sole proprietorship.

  • Easy to form and operate.

  • Owner reports business profit and loss on their personal tax return.

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