Those starting new businesses should know that the simplest form of business is a “sole proprietorship,” which is not a legal entity and simply refers to a person who owns a business and is personally responsible for its debts. While this popular business form is easy and inexpensive to set up, the owner of a sole proprietorship remains personally liable for all the business’s debts. A “corporation” is separate from its owner, which means that, with some exceptions, it is shielded from personal liability. The “limited liability company” (LLC), which is also protected from personal liability, is not required to adhere to corporate formalities such as annual meetings, recording meeting minutes, electing directors, and issuing stock certificates.
For this or any other legal issue, please call LEBHERZ & LEBHERZ, Attorneys at Law, at (508) 548-6600 to make an appointment. Our office is at Old Bailey Court, 99 Town Hall Square.