If you are engaged in a trade or business in which you alone sell goods or provide services, it may be difficult to justify the time and expense of establishing a limited liability entity to serve as your employer. However, as your business grows, and as you begin to add employees, it becomes quite significant to determine just who or what entity is responsible for payment of wages, payment of damages based upon breaches of contract and tort damages that may be suffered by third parties who come into contact with the employees through whom the business acts. Further, product liability claims that may arise from the sale of goods. Even individuals who engage in the business of buying and developing property for resale or for rental, are confronted by the need to establish business entities that would limit their personal liability and responsibility to respond in damages, if there is a breach of contract claim in favor of a third party or a tort claim in favor of a third party.

The attorneys at Schmidt and Wenzel, P.C. can work with you and your accountant to determine what type of entity is appropriate for you and the individuals who might otherwise be partners or business associates who will work with you in your business endeavor. While the attorneys at Schmidt and Wenzel PC do not operate as income tax experts, the attorneys are able to work with your CPA or accountant to accomplish your income tax planning goals and can provide advice on the costs of establishing different types of limited liability entities.

Some clients have established limited liability entities to hold title to oil and gas interests and others have formed limited partnerships or other limited liability entities to hold title to large tracts of ranch land or farm land. The unity of control that comes about by keeping one tract of land subject to the control of one entity is a substantial benefit to the joint owners of the property. Placing title to joint owners of property into a single limited liability entity avoids the messy process of partitioning land each time there is the death of a family member. If any of these considerations might affect you, consider consulting with the lawyers at Schmidt and Wenzel PC to form a limited liability entity to protect you from personal liability and to assist you in planning how either your business or your ranch property will be handled as it passes from one generation to another.