Choosing your business structure:
Be informed to help determine the best business structure for you. There are many reasons today for owner-managers of small businesses to look at the legal business structure of their firms.
Changing laws and the need for capital are just two of the many factors which require owner-managers to carefully evaluate which legal structures best meet their needs.
This Business Builder will provide you business report legal structure the information you need to help determine the best business structure for you. As a small business owner, you must play many roles in order to keep the business functioning smoothly and properly.
However, there are times that you shouldn't try to be lawyer, accountant, marketing specialist, foreman, salesman, etc. Instead, take advantage of the professional advice that is so readily available. A good attorney or CPA can help you interpret the many legal and technical issues which pertain to any one or all of the legal structures for business.
Your savings in time and money for utilizing a professional advisor can far outweigh the possible expense of missteps and wrong turns when selecting the business structure for your firm.
Because laws are constantly changing, it is best to consult an attorney or accountant for the latest in regulations and requirements before you decide on the right business structure for you.
A business venture can be structured in several ways; however, the law classifies businesses so that most fall into one of three legal forms. Sole Proprietorship General Partnership Corporation There are also variations on some of these basic legal forms — the S corporation, the limited partnership, and the limited liability company LLCa relatively new form of business organization, which has gained legal status in a majority of states.
Each business structure you are about to review has its advantages and disadvantages. There is no good or bad structure. The optimum choice depends solely on your personal situation.
Read through each section carefully. Then, decide which structure is best suited to your business needs. Sole Proprietorship The simplest and least amount of paperwork of any of the legal business structures is the sole proprietorship.
To establish a sole proprietorship, you will need a good idea, a lot of determination, and an endless supply of energy for the hard work ahead. However, the only paperwork you'll need is that required for filing a fictitious name if you decide not to use your own and whatever licenses you'll need to begin your operations.
You are not required to perform any formal action to set up a sole proprietorship. Consequently, there is no need to hire professionals to file required government documents to get you started.
You do it all yourself! With nearly three quarters of all businesses operating as sole proprietorships, this business structure is by far the most popular of any of the structures. In fact, many businesses that are partnerships and corporations today, initially started out as sole proprietorships and changed when it became advantageous to do so.
As a sole proprietorship, the business is owned and operated by one person — you!
You don't have any partners to confer with or boards to answer to.Legal Structure of a Business One of the first decisions a new business owner makes is what type of legal structure the business will have.
There are several different ways to set up your company, and each will have implications as far as taxes, financing, and your personal liability. Choosing the best legal structure for your business is one of the first and most important decisions you need to make.
We recommend seeking professional advice from your accountant, solicitor or financial adviser before deciding on your business structure, as you will need to consider many legal, financial and tax issues.
Credit: Shutterstock/Africa Studios. Legal structures shape your journey as a business, and choosing the best structure for your company requires time and consideration.
The most common business structures are sole proprietorship, partnership, limited liability company (LLC), and corporation. The structure you choose will impact your ability to raise money, your tax bill, and what happens if your business is sued.
Powered by Create your own unique website with customizable templates. Get Started. Business reports typically adopt the following sections: introduction, discussion, conclusions, recommendations.
The order of these sections varies depending on whether it is an inductive or deductive report.