The vast majority of investors hold their assets in their own names and most small business owners nationwide are structured as sole proprietors. As a sole proprietor, we own and operate business in our own individual names—and then file a Schedule C on our tax return. But did you know that if you do hold your property and your own business in your own name, you are highly vulnerable to lawsuits, your property and business will be subject to the highest levels of taxation during your lifetime, and your family will pay the price again later with high estate taxes when the time comes to pass on your hard earned wealth to them.

Deciding on the optimal legal structure for any business requires an analysis of current and future business operations and needs. The law provides choices to address personal liability concerns, tax planning needs and the potentially varying interests of one’s business associates. It is critical to fully understand the legal, tax and business implications of whatever option is chosen.