Corporations
Forming a corporation is also a good option for limiting your personal liability in business disputes. Corporations share benefits and are structured differently. The most notable benefits of corporations include:
Limited personal liability.
Just as with an LLC, a corporation protects its shareholders from personal loss in the event of a lawsuit.
Outside financing.
Although each individual in a corporation likely put up capital to become a shareholder, the business itself is financed through the sale of stock. These profits are then retained by the business for use or disbursed to the shareholders as salary.
Taxing on income.
Similar to an LLC, shareholders can claim profits or losses on their personal tax forms. However, individuals also pay capital gains rates on dividends or the individual rates on profit share and capital.
Do You Need To Speak To A Rhode Island Business Attorney?
If you need to speak with an experienced business attorney please contact us online or call our Warwick office directly at 401.946.3200 to schedule your free consultation. We help business owners in Providence, Warwick and all areas of Rhode Island.
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