LEGALLY SPEAKING
Basic Business 101
by Amanda Roggenbuck

With our economy in the shape it is, currently a lot of people are trying a new approach and attempting to start their own business. People constantly ask me what kind of business entity they should have. The answer is, it depends! Your type of business, the kind of investors, the location of business, and your purpose for business are just some of the factors to consider when setting up a business.

Be aware that doing nothing puts you at a much higher risk of personal liability for the actions of the business and its employees. Some of the most common business entities follow below:

CORPORATIONS

A Corporation is an association of persons, created by law and existing as an entity with powers and liabilities independent of those of its members. The management of a corporation consists of directors and officers, usually elected by its shareholders or members.

Some basic information needed to start a corporation:

Name, Capital, Resident Agent, Officers and Shares.

LIMITED LIABILTY COMPANY (LLC)

An LLC is an unincorporated business entity under which neither its owners nor those running the business are personally liable for the obligations of the LLC.

Some basic information needed to start an LLC:

Name, Resident Agent and Purpose.

PARTNERSHIP

A Partnership is a legal entity that is jointly owned by two or more persons. The owners are personally responsible for all debts of the business, even debts in excess of the amount they invested in the business.

Some basic information needed to start a Partnership:

Name, Term of partnership, business or residence address of partners and nature of entity.

PROFESSIONAL ENTITIES

Professional Corporations are the means by which licensed professionals, such as physicians, dentists, lawyers, accountants and enrolled agents incorporate under Michigan Law.

Some basic information needed to start a Professional Entity:

Contact Name, Proposed Name, Resident Agent and Description of Business Activities.

NONPROFIT ENTITIES

Nonprofit corporations are those formed in which members may not receive profits of the corporation. Some common purposes in which a nonprofit corporation is formed include: religious, educational and charitable activities.

Some basic information needed to start a Nonprofit Entity:

Resident Agent, Purpose and Board of Directors.

The information in this article is not intended to serve as legal advice nor does it replace consulting a lawyer about your legal situation and questions.

We welcome your questions and comments. Please visit our Web site at www.roggenbuckandassociates.com, you can also email us at aroggenbuck@roggenbuckandassocaites.com. Our office is located at 6505 Main Street, Cass City, Michigan 48726. We can be reached via phone at 989-872-8881.

Amanda would be happy to answer your questions in this column, and will address them as space allows. Please send your questions to editor@lakeshoreguardian.com or by mail to The Lakeshore Guardian, P.O. Box 6, Harbor Beach, MI 48441.