Starting a business is exciting. The prospect of taking something you love--a hobby, a skill, a passion--and turning it into an income-generating business is relatively common. However, becoming so successful that you can quit your job and working on your business full-time is a dream that not many realize. In this series, we’ll discuss the 5 most important considerations in getting your business started.
Choose the appropriate business entity
Many business owners start their business just by doing. They continue operating informally, indefinitely. This is a terrible strategy and should be avoided. The proper business structure will allow your business to grow, can protect your personal assets in case things go wrong, and add credibility to your business. Whatever business you’re in, you need to create a formal business under which you’re operating.
There are a variety of considerations in determining what business structure is most appropriate for your business. These considerations start with the amount of owners, the business’ product or service, and the long term goals of the business. The most popular choices of business entity are: sole proprietorship, partnership, limited liability company (LLC), and corporation. However, depending on the considerations above, other choices may be more appropriate.
After choosing your business entity, the final step is to register with the government. State government agencies typically maintain online portals where businesses can be registered online. This process can sometimes be complicated and include terms that many people are not familiar with. The costs of registration may vary by state and entity.
To choose your business entity and to complete the registration process, seek the counsel of a trusted business attorney. Click here to discuss your needs with Clark Law.