Legal Question in Business Law in Georgia

What type of corporation should I file?

I am in the process of starting a new business in which I will be designing homes, building homes (custom and spec) and offering landscape services.

I wish to incorporate, but I am unsure which ''type'' of corporation I should consider.

The main reason I want to incorporate is that I want to protect my personal assets (home, cars, etc) from any financial obligations I place on the company.

For instance, the first thing i will be doing is obtaining a loan for a spec home that I plan to build. I want to make sure that, in the event that something goes horribly wrong, I have my home and vehicles protected from seizure.

I have looked at ''C'' cors and ''Close'' Corps - can someone please suggest a plan for me?


Asked on 6/13/05, 7:45 am

1 Answer from Attorneys

Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: What type of corporation should I file?

I would need to speak with you further to give you a complete answer. Of course, any entity you choose will give you the limited liability (with execeptions), which is the main reason small businesses incorporate. The other main considerations are how you want the company to be run and how you want to pay taxes. Most small business owners do not want to pay corporate tax. They want "pass-though" taxation, which means that you only pay tax once at a personal level. LLCs, or limited liability companies, are becoming more and more popular due to the flexible rules on running the business and the pass-through taxation.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

Glenn M. Lyon, Esq

MacGregor Lyon, LLC

Promenade II

1230 Peachtree Street NE

Suite 1900

Atlanta Georgia 30309

Phone 404.942.3545

Fax 404.795.0993

[email protected]

www.macgregorlyon.com

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Answered on 6/13/05, 8:51 am


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