What type of business structure is best for my company?

The ideal business structure (LLC, corporation, partnership, sole proprietorship) depends on factors like liability, tax implications, management style, and future growth plans. An LLC offers limited liability and flexible taxation, while a corporation might be better for large companies seeking outside investors. Consulting a legal or tax professional can help determine the best business formation structure.

What are the legal steps to register my business?

To legally register a business, you’ll typically need to choose a business name, file formation documents with your state’s Secretary of State, obtain any required licenses or permits, and secure an Employer Identification Number (EIN) from the IRS. Requirements can vary by location and business type, so it’s essential to check with local agencies.

Do I need an Operating Agreement or Bylaws for my business?

While not always required, Operating Agreements (for LLCs) and Bylaws (for corporations) are highly recommended. These documents outline key rules for management, profit distribution, ownership rights, and decision-making, helping to avoid conflicts and provide legal clarity, especially if multiple owners are involved.

What are the potential liability risks for business owners?

Liability varies based on the business structure. Sole proprietorships and partnerships expose owners to personal liability for business debts. In contrast, LLCs and corporations provide limited liability protection, keeping personal assets separate from business liabilities. However, improper management or failing to maintain formalities can compromise this protection.

Are there ongoing legal requirements after forming my business?

Yes, most businesses have ongoing requirements, such as filing annual reports, paying taxes, and renewing licenses. Corporations and LLCs often need to hold regular meetings, keep minutes, and update documents. Staying compliant helps avoid fines, penalties, or even dissolution, so regular legal maintenance is essential.

Business Formation Lawyers | LLC, Corporation & Partnership

Business Formation in Salt Lake City, and Sandy, UT

Utah Business Formation Lawyers in Sandy

Starting your entrepreneurial journey comes with careful planning, financial stability, and the ability to be adaptable. Business formation law is an important aspect of forming a stable and profitable company. Developing the right business type, working with government entities, and filling legal contracts can all be done by our team at WW Partners. Learn more about business formation and the legal processes needed to establish a structurally sound business below.

What Is Business Formation Law?

The legal process of forming your business structure, filling out paperwork, obtaining permits, and providing financial advice are included in business formation law. Properly forming a business will protect you from liability and trouble with the law. All businesses need to meet legal obligations and state regulations. WW Partners will help you form your business on a solid foundation for long-term success.

Starting a Business? Let the Experienced Attorneys at WW Partners Help!

(801) 699-0059

Types Of Business Entities

When starting a business, choosing the right legal structure will impact taxes, liability, and all aspects of operation. Here are the most common business structures that WW Partners can help you navigate.

Sole Proprietorship: This is the simplest and most common form of a business structure. These businesses are operated by one person and there is no distinction between the owner and the business. The owner will be liable for debts, problems, legal actions, and all daily operations. Sole proprietorships require minimal paperwork and are very low-risk when testing a business idea.
Partnership: Two or more individuals share ownership in a partnership. There are a few different types of partnerships that can help businesses of different sizes. General partnerships, limited partnerships, and limited liability partnerships are the three most common types of business structures. Partners will share different responsibilities, handle different finances, and have different levels of involvement. Limited partnerships will have a partner who manages the business and one who contributes to capital but has limited involvement. There are many different structures that can benefit your business depending on the industry.
Limited Liability Company (LLC): An LLC is one of the most common business structures for a business formation. It offers liability protection for a corporation but the tax benefits of a partnership. Owners are known as members and are not liable for the company’s debts or lawsuits. LLCs are flexible and offer a better means of profit distribution.
Corporation: Corporations are separate legal entities from the owners. Corporations make the owners shareholders which also comes with lower personal liability.
- C Corporations: C Corporations have a corporate structure that is taxed on its profits and shareholders are taxed on dividends.
- S Corporations: S Corporations are a special type that allows profits and losses to be passed directly to shareholders. They will not be subject to corporate tax rates if they meet certain criteria
Nonprofit Organizations: Non-profits are business formations established for any other purpose than making a profit. Charitable, educational, or religious objectives are often formed in non-profits. These businesses also enjoy tax-exempt status and have to adhere to regulatory requirements. This structure will prohibit the distribution of profits to owners or shareholders

Steps To Correct Business Formation

Selecting the appropriate business structure is just the beginning. The next step will be to create the business from the ground up and start sharing your expertise with others. The steps to business formation include:

Choosing a business name
File formation documents
Obtain an employer identification number
Register for state and local taxes
Obtain permits and licenses
Comply with ongoing legal requirements
Choose business location

Depending on your industry and entity type, there will be different contracts and permits you need to obtain. When starting a business from scratch, many small components will need to be handled with care. Working with a business lawyer will help you eliminate confusion when swimming through a new business setup.

Start Your Business Journey with WW Partners Today!

Other Legal Considerations

Business lawyers will help you navigate business formation as well as setting up protective measures to ensure the longevity of a business. Here are some additional legal proceedings WW Partners can aid with.

Taxation

Every business will need to be taxed, but they can be taxed differently depending on profit, industry, company structure, and state. Our business lawyers can help you choose the best business structure to provide you with tax benefits.

Liability Protection

The main reason that a business should seek legal advice is to protect assets and business liabilities. When you follow formalities, you will keep your personal life and business life separate. Our lawyers can help you keep up-to-date records to prevent liability and financial fraud.

Compliance

Local, state, and federal regulations will be put in place on any business. Filing deadlines, tax requirements, and employment laws are just a few compliances that businesses need to worry about. Typically, these regulations can get confusing and complicated for a business owner. Our lawyers will help break them down and lead you in the right direction.

Client-Focused & Results-Driven

Common Business Formation Questions

What type of business structure is best for my company?

The ideal business structure (LLC, corporation, partnership, sole proprietorship) depends on factors like liability, tax implications, management style, and future growth plans. An LLC offers limited liability and flexible taxation, while a corporation might be better for large companies seeking outside investors. Consulting a legal or tax professional can help determine the best business formation structure.
What are the legal steps to register my business?

To legally register a business, you’ll typically need to choose a business name, file formation documents with your state’s Secretary of State, obtain any required licenses or permits, and secure an Employer Identification Number (EIN) from the IRS. Requirements can vary by location and business type, so it’s essential to check with local agencies.
Do I need an Operating Agreement or Bylaws for my business?

While not always required, Operating Agreements (for LLCs) and Bylaws (for corporations) are highly recommended. These documents outline key rules for management, profit distribution, ownership rights, and decision-making, helping to avoid conflicts and provide legal clarity, especially if multiple owners are involved.
What are the potential liability risks for business owners?

Liability varies based on the business structure. Sole proprietorships and partnerships expose owners to personal liability for business debts. In contrast, LLCs and corporations provide limited liability protection, keeping personal assets separate from business liabilities. However, improper management or failing to maintain formalities can compromise this protection.
Are there ongoing legal requirements after forming my business?

Yes, most businesses have ongoing requirements, such as filing annual reports, paying taxes, and renewing licenses. Corporations and LLCs often need to hold regular meetings, keep minutes, and update documents. Staying compliant helps avoid fines, penalties, or even dissolution, so regular legal maintenance is essential.