Johnson Cooke & Associates, LLC
15 years experience
Providing a full range of accounting services

Business Entity

Business Consultant

Of all the choices you make when starting a business, one of the most important is the type of legal structure you select for your company. Not only will this decision have an impact on how much you pay in taxes, it will affect the amount of paperwork your business is required to do, the personal liability you face and your ability to raise money.

The type of business entity you choose will depend on three primary factors: liability, taxation and record-keeping. Here's a quick look at the differences between the most common forms of business entities:

A sole proprietorship is the most common form of business organization. It's easy to form and offers complete managerial control to the owner. However, the owner is also personally liable for all financial obligations of the business.
 
A partnership involves two or more people who agree to share in the profits or losses of a business. A primary advantage is that the partnership does not bear the tax burden of profits or the benefit of losses-profits or losses are "passed through" to partners to report on their individual income tax returns. A primary disadvantage is liability-each partner is personally liable for the financial obligations of the business.
 
A corporation is a legal entity that is created to conduct business. The corporation becomes an entity-separate from those who founded it-that handles the responsibilities of the organization. Like a person, the corporation can be taxed and can be held legally liable for its actions. The corporation can also make a profit. The key benefit of corporate status is the avoidance of personal liability. The primary disadvantage is the cost to form a corporation and the extensive record-keeping that's required. While double taxation is sometimes mentioned as a drawback to incorporation, the S corporation (or Subchapter corporation, a popular variation of the regular C corporation) avoids this situation by allowing income or losses to be passed through on individual tax returns, similar to a partnership.
 
A hybrid form of partnership, the limited liability company (LLC) , is gaining in popularity because it allows owners to take advantage of the benefits of both the corporation and partnership forms of business. The advantages of this business format are that profits and losses can be passed through to owners without taxation of the business itself while owners are shielded from personal liability.
We serve all types of small to mid-sized businesses in practically every industry from retail and manufacturing to distribution and services businesses and everything in between. If you are looking to sell your business, we want to spend as much time as necessary with you to learn all we can about your specific business. The more we know, the better we can serve you. In turn, if you’re hoping to buy a business, we want to learn about your background and interests. Great, unexpected matches come from such discussions.  

Our mission is to help business owners when they are ready to sell to turn their years of sweat equity into cash and help would-be entrepreneurs find the right business to match their skills, interests and resources. Our goal is to maximize the value you derive from selling or buying a business.

We firmly believe that it is our responsibility to provide our clients with a comprehensive approach to each and every business transaction. We are committed to providing extraordinary service with honesty, integrity and professionalism. It’s our job to bridge the gap between buyers and sellers while protecting client interest and providing the level of service every small and mid-sized business owner should expect to receive.  

Our associates are seasoned professionals. Each is trained in business brokerage, has his/her Georgia Real Estate license and has extensive experience in a variety of business types and business finance, management, marketing and consulting fields. We have the knowledge, desire, and commitment to not only meet but exceed your expectations.