Starting a Business: Which Entity is Right for You?

Under the law, there are various types of business entities you can choose from when starting your business. It is essential to do your homework to pick the correct entity to avoid unnecessary liability and tax ramifications in the future.

We can help your practice get up to date and prepared to minimize breach risks from third-party vendors. Subscribe to stay current and up to date on important matters that will impact your practice.  (To subscribe to our blog ).

We always encourage people work with their accountants and their lawyers when forming a new business to make the best choice.

Picking the wrong entity can have serious consequences in regards to liability, costs, and ability to operate in the way the entity wishes.

When looking at starting a business, there are a few different entity options to consider, including:

  1. Corporations
  2. Limited Liability Companies
  3. Partnerships and Limited Partnerships
  4. Limited Liability Partnerships
  5. Professional Service Entities

There are many aspects to evaluate when deciding which entity to choose, as all entities have different appeals and potential pitfalls. These should be carefully reviewed with your attorney and your accountant.

We also help our clients decide which state to form their entity in, as some clients wish to form their entity in Delaware or Nevada due to their corporate laws.

When looking at which entity will work best for your business, some things that you should think about include:

  • Whether there is one owner or multiple owners,
  • Whether the owners are individuals or entities,
  • How much involvement the owners will have in the business,
  • Type of contributions that will be made to start the business,
  • Management of the entity,
  • Potential liability of the entity,
  • Tax considerations, and
  • Sale of the company.

As every business is different, the list above is far from exhaustive. We work with our clients to make sure that their formation documents are tailored to them closely. We help our clients walk through different possibilities and scenarios to make sure that when they form their entity, they are getting the most protection possible under the law, while still being able to carry out their business endeavors.

How did you decide which entity to choose for your business? Let us know by commenting below!

We publish vital information on health law, business law, IT law, and more every Wednesday and Friday. To get this important information delivered directly to your mail box, 

Do you need help with your policies and procedures or negotiating contracts with third-party vendors?  We can help. To contact us about your legal needs:  CLICK HERE.

Related Posts


Recent Posts

Getting Remarried? Here’s What You Need to Know
March 21, 2024
What is the Biggest Threat to Healthcare?
January 30, 2024
How Can I Simplify Estate Planning?
January 11, 2024
I Have a Trust. Now What?
December 7, 2023
Breaking: Corewell Health Breach
December 5, 2023


Subscribe to Our Newsletter

Subscribe and get your FREE copy of Easy Guide to HIPAA Risk Assessments

An essential tool for all healthcare providers, Easy Guide to HIPAA Risk Assessments breaks down the requirements of HIPAA so you can successfully complete your required risk assessment. (an $8.99 value)

Thank you for subscribing to the Rickard & Associates healthcare blog. You'll receive a confirmation email shortly. After verifying your subscription request, you'll be sent to the "Easy Guide to HIPAA Risk Assessments" download page.