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Considerations surrounding entity choice: LLC or corporation?

"Entrepreneurship is risky."

We note that point in a prior blog post at Russ Cook & Associates. We stress in our April 6 entry that it is a given in the American business world, with its diverse and quickly changing landscape.

Getting a Tennessee business to the point of traction and a hopeful future is a huge achievement for smart start-up principals. Those creative and driven individuals have necessarily factored in company risks from the outset and purposefully dealt with them every step of the way, often with help from established commercial law attorneys.

Acknowledged risk can also be the catalyst for careful consideration at a key early stage for business owners. Namely, that is when entrepreneurs focused on success must decide what legal form their enterprise should assume.

Ultimate business success or failure is often determined at company inception. We note for Tennessee entrepreneurs on our website that conducting the timely due diligence to get it right at the creation stage "is an investment into your and your business's future." An ill-advised entity selection can leave business owners' finances "open to the whims of the business industry or the economic fluctuations that change it."

Fortunately, that latter outcome is far from preordained. Proven business law attorneys routinely help their valued clients carefully gauge entity choices and make decisions that will optimally benefit their enterprises.

For many business owners, entity selection entails close consideration of two commercial alternatives. Those are limited liability companies (LLCs) and corporations, respectively. Each of those two business forms have distinct characteristics that can make them especially suitable or, conversely, unattractive options for start-up owners.

We will take a closer look at corporation-versus-LLC considerations in our next blog post.

Russ Cook & Associates welcomes contacts to the firm concerning any business law matter, as well as the opportunity to bring our experience to bear on behalf of Tennessee business owners who require diligent legal representation.

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5141 Virginia Way
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Brentwood, TN 37027

Phone: 615-200-9117
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