It has become customary for many businesses to set up a limited liability company (LLC). Especially when it is a 1 or 2-person business.  Among the many advantages of LLCs are simple default tax classifications: sole proprietor for 1 member, partnership for more than 1 member, also known as “pass-through.” This is the same regardless of the type of member. However, have you asked your lawyer, accountant, or business advisor if it makes sense to simply take the default classification? Small businesses should consider whether making the election to be treated as a “S-corporation” makes sense.

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If you are unsure about the benefits or the choices discussed above, feel free to contact us by email or by calling 1-866-734-2568. For over 27 years, we have guided business owners in this important depiction-making process.

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Published by David

I am a the founder of a boutique intellectual property law firm based in Chicago, Illinois. In my role as a trusted advisor, I act as the primary transactional attorney for my clients, reporting directly to a company’s executive staff and/or its General Counsel. I provide advice to business units and executives on copyright, trademark, ecommerce, software/IT, media & entertainment and issues associated with creating and commercializing innovations and creative content, drafting and negotiating contracts and licenses, advising on securities laws and corporate governance and managing outside counsel. My clients frequently rely on me to successfully draft and negotiate complex commercial and intellectual property transactions such as supply/distribution agreements, IP development and license agreements and documentation related to mergers, acquisitions and divestitures.