One of the most important steps in starting a new company is determining the type of business entity to form: an individual proprietorship, a partnership or a type of corporation. In New Mexico, you can form one of three types of partnerships:
- General partnership
- Limited partnership
- Limited liability partnership
As for corporations, you can form one of four types:
- S-chapter corporation
- Limited liability company
- Professional corporations for firms that engage in providing certain enumerated professional services such as practicing law or medicine
- Nonprofit corporation
The factors that you need to consider when evaluating which entity is best for your circumstances include tax treatment of profits, individual protection from liability, how much control different people involved in the company should have, who and to what extent will each owner possess an ownership interest in the company and whether some participants want an operational or merely an ownership role in the company.
It is essential that you discuss these options with an attorney with expertise in these areas before you decide what type of entity best fits your needs and goals. The decision you make is very important and should be reached only after you fully consider all options.
Mr. Giddens at Giddens & Gatton Law, P.C. has experience advising New Mexico business owners as to which corporate entity will best serve their company’s needs. Giddens & Gatton Law, P.C. is located at 10400 Academy Road N.E., Suite 350 in Albuquerque, New Mexico. Call the office at (505) 633-6298 to set up an appointment or visit the firm’s website at giddenslaw.com for more information.