Various business structures are used today. Business owners will want to make sure they take the time to carefully consider all of their options before they create a business plan to ensure they choose the right one for how they would like the business to operate. It’s a good idea for potential business owners to Ask Legal Lord Law Firm for advice before settling on the structure for their business.
Sole Proprietorship or Partnership
These businesses are created by a single person or a few people together and are often the easiest types of businesses to create. They do not have all of the benefits of other types of businesses but can have lower taxes and other benefits. Additionally, the business owner or owners will be liable for the business. This means if there are any financial issues the business cannot cover alone, the business owner or owners could be personally liable.
Corporation
A corporation is more complex but can provide more protections for the business owners. They also may be able to obtain further benefits that a sole proprietorship or partnership cannot obtain. With a corporation, shares of the business can be sold to the public through the stock market. Other types of businesses do not have this ability. This type of business structure, however, can limit what the business owner or owners can do.
Non-Profit Corporation
A non-profit corporation is set up similar to a corporation, but the goal is not to create profits. Instead, the goal is to raise awareness for something or to raise money for a charity.
LLC (Limited Liability Company)
The main issue with a sole proprietorship or partnership is the liability the business owner or owners will have. One of the ways to combat this is to create a limited liability company where the business owner or owners will be able to create a business with more freedoms than corporations, but will not have the liability issues that sole proprietorships or partnerships will have.
The business structure used is going to have an impact on how the business is operated as well as the taxes for the business. If you’re working on launching a business, take the time to Ask Legal Lord Law Firm for help so you can choose the right structure for your business.