Experienced. Trusted. Client-Centered.

What should I know when setting up my business?

New business owners may be overwhelmed by the number of important decisions they need to make when setting up a new business. It is helpful for them to be familiar with the different business forms they can choose from to set their business up and what each means for their business.

Four main types

There are four main business types including sole proprietorships, partnerships, limited liability companies and corporations. One of the important implications of selecting a business form is the amount of personal lability the new business owner wants to take on. Sole proprietors and partnerships do not offer liability protections for the business owner or partners. On the other hand, corporations offer protections for the business owners and members of limited liability companies also enjoy personal liability protections.

Taxation issues

Other important considerations when selecting a business form includes how the business form and owners will be taxed, how the business will be managed, the costs to set the business form up and the ongoing costs of operating the business and how the business will be ended or can grow and seek additional capital which can all be potentially impacted by the business form selected. It is important to take into account where the business owner is at when they are starting the business up but also where they want to take the business when deciding on a business form.

Business law can help new business owners sort out the complexities of their start up and all the important decisions they must make. Knowledge of the different business forms and how to make the best selection for the business is valuable information to have.