As a concept, creating a new business seems simple. You rent some property (or maybe you have your own), refurbish the property, make it presentable and then sell some products or provide services to people. How easy was that?
Well, thinking through the creation of a business and actually implementing that process are two completely different things. There are a lot of procedural steps that need to be taken, and a lot of legal process that need to be completed. For an entrepreneur, this can be a very daunting time, and usually a new business owner is in need of legal help to ensure their business gets off the ground.
One of the most crucial parts of planning and implementing your business is choosing the “type” of business it will be. We don’t mean what you will sell or what services you provide — what we mean is the business structure. Is your company a sole proprietorship? Is it a limited liability corporation? Is it a partnership, and if so, what type of partnership? Have you decided to go the non-profit route? Is your venture a co-operative?
These are essential questions that will need to be answered to ensure that your company is properly established and can function effectively. Each type of business structure has its benefits and negatives, so you will want to discuss these issues with an experienced business attorney before you take any additional steps towards creating a new business.
Source: FindLaw, “Types of Business Structures,” Accessed May 11, 2016