The Disregarded Entity: How UpCounsel Can Help Your Business
A Disregarded Entity: Recognized for Tax Purposes, but Not Legally3 min read
A disregarded entity is a business structure recognized for federal income tax purposes, but not as a legal entity for civil law purposes. Disregarded entities are typically used when a sole proprietor wants to separate their business assets and liabilities from their personal assets and liabilities. For businesses operating in California and other states, working with a trusted, experienced attorney to ensure that a disregarded entity is set up properly according to local and federal regulations is essential. In an environment where local economies and labor markets are rapidly changing, always having access to qualified legal counsel is especially important.
UpCounsel recognizes the value of having reliable counsel in a business’s corner and was created to provide an online network of experienced lawyers who can provide both high quality services as well as cost-effective solutions for businesses in the United States and beyond. The UpCounsel Difference is among the most comprehensive and efficient way for businesses of all sizes to access high quality attorney support on demand.
What Is a Disregarded Entity?
A disregarded entity is a business structure recognized for federal income tax purposes, but not as a legal entity under state or local law. Commonly used by a sole proprietorship, a disregarded entity allows the business to separate its assets and liabilities from those of the owner. This allows the business to maintain its own financial accounts and to benefit from separate sources of income or liability.
For example, in California, insurance companies, banks, and other regulated entities may require a corporation or limited liability company to separate itself from its owner’s personal obligations. A disregarded entity allows for the legality of this separation without having to go through the rigors of creating a corporate or LLC formation.
Why It Is Essential To Have An Experienced Attorney Handle Your Disregarded Entity
Having an experienced attorney handle your disregarded entity is essential. An attorney will be able to ensure that all documents and filings are completed correctly according to local regulations and laws, and provide advice and guidance should any issues arise.
UpCounsel’s network of experienced attorneys understands the complexities of the local Los Angeles legal landscape, including the obligations and rights provided in a disregarded entity structure. By understanding what is required both at a state and local level, businesses can rest assured that their disregarded entity is correctly and accurately set up according to the law.
UpCounsel: The Most Comprehensive And Efficient Way To Access Qualified Legal Counsel
Regardless of the size of the business, UpCounsel can provide experienced legal counsel and assistance. It offers businesses legal protection when they need it most, whether it’s for a one-time consultation or an entire freelance legal department.
UpCounsel’s attorneys have an average experience of 14 years in the industry, and have worked with clients of all sizes from small businesses to the Fortune 1000. Profiles of attorneys include client ratings and reviews of work completed, and the UpCounsel network offers businesses a reliable source of legal help, with access to experienced attorneys on demand.
Accessing Quality Counsel Through UpCounsel
Tapping into UpCounsel’s network of attorneys is a simple and straightforward process. When a business needs legal advice or help with a disregarded entity, they’ll begin by providing basic information about their legal issue and the services they need. This then allows the UpCounsel network of attorneys to match the business with lawyers who specialize in their specific legal issue and who are also able to provide the type of support the business needs.
By leveraging the network of experienced attorneys available through UpCounsel, businesses can count on receiving reliable professional legal advice and support from experienced attorneys who understand the complexities of the legal system and regulations in their specific location.
Conclusion: A Trusted Network Of High Quality Legal Counsel For Your Disregarded Entity
Disregarded entities are a critical part of many business operations, particularly those operating in the California region. Without experienced counsel, businesses face a number of challenges in setting up and operating a disregarded entity which could compromise security, financials, and overall operations.
By leveraging UpCounsel’s legal network, businesses in the Los Angeles area can ensure their disregarded entity is correctly established and operated according to local regulations, while getting the comprehensive and cost-efficient legal support they need. From small businesses to large corporations, UpCounsel provides access to the highest quality legal counsel at all times.