How to Identify the Business Formation

When individuals come together with the purpose of turning a profit a business is created. The liability of the business is directly affected by the type of business you have and where it is formed. 1. Formal business letterhead will often tell you the business formation. Usually, if the business type is not listed the business is a sole proprietorship or a partnership. The terms LP, LLP, or LLLP mean the partners in the business are protected in a limited manner from liability. The term LLC means limited liability company and refers to the business and not the individuals that run it. 2. When a partnership is the business in question, find the address. Use the city to determine the correct filing venue. 3. If the business is an LLC, the state is the important item in question. LLCs are filed at the state level. 4. If the business is a corporation, find the business address for the corporate office. Corporations are often formed in Delaware because their courts offer a favorable climate for business owners. 5. If you can't locate the business, contact a business litigation attorney. If you file in the wrong state, you're wasting time and money.