You’ve been interested in starting up your own company for quite some time, but you aren’t sure where to start. You know that having a business is complex, and there are many things you need to do.
The first thing you’ll want to do is to sit down and decide on your business structure. There are several different structures you may want to consider. These include partnerships, Limited Liability Company (LLC), nonprofits, sole proprietorships and corporations. Each of these has its own benefits, affects how taxes are paid and dictates other details about how the business should be handled and run. For example, with a sole proprietorship, you won’t have the same protections against personal liability as those with corporations.
Why is it so important to get your business structure right?
The right business structure makes a difference. It can change the level of liability that you take upon yourself, dictate how you pay your employees or even affect your taxes. As a start-up company, you may want to talk to an attorney about the different options, because not doing so could come back to haunt you later on. You need to choose the right structure that offers you the correct protections as soon as you can. With more information, you can make a better decision about the kind of structure that would work best for you.
Our website has more on choosing your business structure, paying business taxes, working with partners and other essential topics. If you’re new to business, getting the right guidance will help you move forward with the right business structure.