Experienced Vero Beach Florida Corporation Lawyers

There are many different ways to structure a business. The common choices are to either use a sole proprietorship, a partnership, or a corporation. There are pros and cons to all types of business structures.

What are some of the advantages of a corporate structure?

Corporations can be used for most types of business. Corporations are business structures that are generally independent from their owners. Corporations have a fiduciary duty to act in the best interests of the shareholders.

The main reason people consider creating a corporation is that corporations can protect the owners from personal liability. Generally, if the corporation complies with the proper formalities and the contracts are handled properly, creditors normally can only file a claim against the corporation. Creditors generally cannot file a claim against the owners of the corporation unless the owners agreed to be responsible for the contracts, purchases, debts, or other financial transactions that resulted in the creditor’s claim.

It's generally easier to transfer control of a corporation. A corporation has perpetual life - unless it dissolves. Generally, corporate control is transferred when the shares of stock are sold or transferred to other individuals. A majority of stockholders generally control the right to manage the business.

It’s normally easier for a corporation to raise capital than it is for partnerships and proprietorships.

What are some of the disadvantages of a corporate structure?

There are specific corporate requirements that must be met. A corporation must properly file legal documents with the Florida Department of State – Division of Corporations. The corporation must appoint officials to manage its business. There must be corporate bylaws. Corporations must conduct regular meetings.

There are many additional state requirements and federal requirements depending on the type of corporation, the types of stock that are issued, and many other factors.

Corporations must file separate corporate tax returns. The income of a corporation that passes through to an individual is taxed twice.

Corporations that do business in states outside of Florida can normally be sued wherever they do business.

At Lulich & Attorneys, our Vero Beach and Sebastian corporation lawyers understand the advantages and disadvantages of using a corporate structure as compared to other business structures. We understand the requirements for forming a corporation, maintaining a corporation, and dissolving a corporation. To discuss how a corporate structure can benefit your business and corporate compliance issues, call our Indian River County financial lawyers at 772-589-5500 or fill out our contact form to schedule an appointment.

Vero Beach Office

Address: 1612 20th Street,
Vero Beach, FL 32960

Phone: 772-589-5500