The Law offices of J. Vincent Perryman
Midsouth Attorneys > LegalEase Episode List > Memphis attorney Vincent Perryman discusses Business Entities with Gus Wilson

Memphis attorney Vincent Perryman discusses Business Entities with Gus Wilson


Memphis attorney Vincent Perryman discusses Business Entities with Gus Wilson Part 1

Memphis attorney Vincent Perryman discusses Business Entities, the Formation and how to get a Memphis Business started. One of the most important decisions when forming a Memphis business is choosing the proper "Road Crew". A "Road Crew" is a group of Memphis Accountants, Memphis Attorneys, Memphis Business advisors, or Memphis CPAs. This is essentially anyone that can help in choosing the proper Memphis Business entity. There are several Memphis business entities to choose from. Some of the major Memphis business entities are Memphis Sole Proprietorship which is just the individual, Memphis Partnership which is a group of individuals joining together to start a business, an S-Corp which is a business entity with shareholders and a C-Corp which is a large group of share holders. There are also a few hybrid Memphis Business entities. These include Memphis LLCs and Memphis Single Member LLC. Sole proprietorships are easy to setup and easier to maneuver, but can be more difficult. Two key issues for Memphis business entity selection are taxation and business risk. Business entities differ from state to state. The Single Member LLC is recognized in TN, but is disregarded for Federal Tax purposes. A Memphis sole proprietorship is very flexible and the only taxation to deal with is at the individual level. There is also little paper work to file which includes filing for a Memphis business license to conduct business in the state of Tennessee. If there are employees you will need to file for a Tax ID number. Taxes will be filed on Scheduled C for the individual. All these entities can be modified into a different type of business entity.

Memphis attorney Vincent Perryman discusses Business Entities with Gus Wilson Part 2

Some risks that may be incurred with having a Memphis Sole Proprietorship. If the Memphis business experiences trouble it can come back on the individual. If the business is sued, the individual is sued. So in a Memphis Sole Proprietorship it is always a good idea to obtain some form of Malpractice insurance. If the risk is too great to handle as a single entity then a Memphis partnership may be a better idea. A partnership is just a group of people pursuing the same goals. When forming a Memphis partnership it is good to fully understand the operating agreement before entering into the partnership. With a partnership there are no taxes at the business level. It is all at the individual level. In a partnership a partner can draw against the business income that is taxed at the individual level. A C-Corp has many benefits and risks. The biggest advantage of a C-Corp is that if the Memphis Business Entity is sued the business is the only individual that can be sued and no personal partners are eligible to be sued. It is called a C-Corp because it is a chapter C in the revenue corp. The S-Corp is called such because it is located in the chapter S of the IRS code. The difference in the C-Corp and S-Corp is that the S-Corp is more like a Hybrid. The Memphis entity exists at a C-Corp but you pay taxes at the partnership type level. The S-Corp can only have up to 75 partners. In a C-Corp Tax returns are very expensive and this will cost 35% of your earnings from 300,000.00 to 10,000,000. If the corporation makes profits then it is eligible to be taxed when the profits are made by the Memphis business and also when they are disbursed to the individuals. The S-Corp has limitations when selling it also. A C-Corp can not be a share holder in an S-Corp.

Memphis attorney Vincent Perryman discusses Business Entities with Gus Wilson Part 3

There are certain people that cannot own shares in a Memphis S-Corp. In an S-Corp partnership agreement all partners are treated as equals. They have equal rights in the company. An LLC is the business risk of an S-Corp with the taxation of a partnership. You file on the same forms as a partnership. 52% of all businesses formed are LLCs. The formation of an LLC can be accomplished by going online and filling out a form, however you are not getting the proper advice you would receive from professional Memphis advisors. The initial forms are simple, but there are many other forms that need to be filed and created like by laws, partnership agreement, or an Articles for Organization. Without creating and filing these forms it can put a business in jeopardy. It is always better to create a business entity with the proper advice on the front end. After building a relationship with these Memphis Business advisors it is easy to have them help you after the business is thriving or struggling.

- View All Episodes -
Legalease Episodes
  • Memphis attorney Vincent Perryman discusses Tennessee Legislature with Brian Kelsey
  • Memphis attorney Vincent Perryman discusses Bankruptcy on LegalEase with Memphis attorney Bill Jones
  • Memphis attorney Vincent Perryman discusses Estate Planning on legalease with Bill Jones
  • Memphis attorney discusses Shelby County General Sessions Court with Judge Phyllis Gardner
  • Memphis attorney Vincent Perryman discusses Identity Theft on LegalEase with Lynn Duncan
  • Memphis attorney Vincent Perryman discusses Employment Law on LegalEase with Edgar Davison
  • Memphis attorney Vincent Perryman discusses Memphis Area Legal Services with Linda Seely
  • Memphis attorney Vincent Perryman discusses Real Estate Law with Neal Hanna
  • Memphis attorney Vincent Perryman discusses Tax Law with Gus Wilson
  • Memphis attorney Vincent Perryman discusses Tax Preparation with Gus Wilson
  • Bankruptcy
  • Business Planning
  • Collections
  • Collegiate Sports
  • Construction Law
  • Criminal Law
  • Estate Planning
  • Family Law
  • Juvenile Law
  • Nonprofit/Tax Exempt Organizations
  • Nursing Home Neglect
  • Probate
  • Representation before State Departments of Revenue
  • Representation before the Internal Revenue Service
  • Tax Controversies
  • Tax Planning
  • Trust Administration
  • Will Planning
  • footer
    Memphis Attorneys   Memphis Probate   Memphis Estate Planning   Memphis Criminal Law
    Legalease Episodes    Memphis Nursing Home Neglect
    super lawyers badge Avvo tax badge Avvo probate badge Avvo estate planning badge The Law Offices of J. Vincent Perryman
    4719 Spottswood, Memphis, TN 38117
    Ph: 901-347-0647
    Fx: 901-255-0745

    Providing legal services for Memphis Tennessee and surrounding areas.
    Memphis lawyer and Memphis attorney services.
    Disclaimer: Use of this website does not create an attorney-client relationship.