When starting a business, one of the most important decisions you have to make is deciding on a business entity. From personal liability to how you will be taxed, the entity you choose can have some serious ramifications for how well your business is protected.
Depending on the small business you plan to start, you might be better off choosing one type of entity over another. Will you go with an S-corporation? A C-corporation? An LLC? A partnership? Don’t know where to start?
Do your homework.
Do Your Homework on Your Chosen Business Entity
The first thing you should do when deciding on how to structure your company is researching what each would mean for your business. Ask yourself whether an LLC would help you keep taxes down. Ask yourself if you plan to have shareholders. The bottom line is the more you know about each entity, the better decision you can make from the start.
Keep to What You Know
You’ve got a business to run. There was probably something about the work you wanted to do that made you start a business in the first place. But starting a business and deciding on a business entity requires you to do some things that you might not be familiar with. But you don’t have to do that work. Consider hiring others who have the expertise and familiarity with the process that you need, and keep to what you do best—whatever the core of your business is about.
Don’t Worry about Restructuring
Businesses change. It’s actually in their nature. So, what might seem like a good decision at the beginning might not work with the changes that occur over the years. But don’t worry. You can restructure your business if you have to.
Need help choosing or changing your business entity?
If you’re having trouble deciding how to structure your business, or if you need to change your business from one structure to another, get in touch with us. We can help you figure out the best option for your specific situation. Our attorneys are business law experts, so we have the knowledge that you need to have a successful business. Contact us today.