What is the Best Way to Structure My Entity? Part 2

<p> Part two of the series will go over another risky type of business and then finish off with the best way to structure your entity from an asset protection standpoint.  <p>

<h2> General Partnership <h2/>

<p> A general partnership is simply an association of at least two people with the purpose of making a profit.  It is basically a sole proprietorship involving more than or person tied by a partnership.  It is without a doubt the most risky form of business possible.  This is because you are now not only liable for your mistakes but also for the mistakes of your partners.  Every partner you add also adds that much liability.  So if your partner’s son gets in an auto accident your business is now liable.  This is once again never recommended from an entity structuring standpoint. <p/>

<h2> Corporations <h2/>

<p> A corporation is governed by state law and is considered a separate legal entity. It is operated based on its bylaws along with resolutions written and accepted by its shareholders and directors.  It must never function as the alter-ego of its stockholders.  In order to remain a corporation and keep it out of default corporate formalities must be maintained.  Depending on which state the corporation is held different laws may be apply.  Some states are more attractive to hold a corporation in for different reasons. <p/>

<p> Corporations are the only real way to protect your assets.  It is also a great way to maximize your tax deductions.  Log onto pfbs.com to find out how to set up a corporation, and to learn other wealth building strategies. <p/>