Choosing a business form for your law firm is a decision that is crucial to your law firm’s success. Whether you choose to operate as a sole proprietor first or a professional corporation, there are several factors to consider, including the two below.
Costs
Certain business structures are more expensive to operate than others. For example, a sole proprietorship is less expensive than a PC.
Taxes
If you’re running a law firm, you’re running a business. And every business in the U.S. has tax obligations. Certain forms afford their owners more tax advantages. For example, if one forms a PC or PLLC and the owner is also an employee of their law firm and elects to be taxed as an s-corp, the firm would pay a portion of that owner’s federal taxes.
If you have more questions on business form factors, feel free to contact us here or at hello@gambitlawyers.com.
