One of the most basic questions anyone thinking about starting a business should consider regardless of how small or how large that business may be at the outset is the question of what legal form their business should take. There are several forms a business can take and it is important to choose what’s best both for the business and its owners.
There are, of course, pros and cons to each available form but choosing the best form for your business can increase the ultimate profitability of your business for you as an owner while limiting your personal responsibility for the liabilities of your business businessmantalk.com. Also, if there will be more than one owner of the business, there are potential threats to the business that should be answered before business begins such as questions of what will happen if an owner dies or wants out of the business.
The cost and effort of careful planning before starting a business often seems an unnecessary expense and distraction to entrepreneurs intent on pursuing their business dream. Yet such planning is essential if the business is going to maximize profitability for its owners and survive the possible events that could otherwise bring the business to a premature death.
What follows is not intended to be an all encompassing discussion of all those pros and cons. Instead, this article is only a brief sketch of some of the principal benefits and drawbacks to each form for doing business.
Also, this discussion only addresses issues in closely held entities and does not speak to the peculiar issues of publicly traded entities or to various securities law issues that may arise even in the context of a small, closely held business entity.
Finally, it’s important to note that this discussion relies on Oregon law. While the law of other states may often be identical or similar, it is essential to determine the best form of business entity on the basis of the law applicable to your anticipated business activity.
We all agree that it is not easy to start a new business. Instead of directly doing business activities, beginners are usually stuck with their bustle which distanced themselves to start the actual business activities. They are busy making business cards, choosing fonts or company logo, or thinking about the valuable business concept. This condition sometimes happens until weeks or months without doing the real business.
It is true that to start a business need good preparations. According to Robert Spiegel, author of The Shoestring Entrepreneur’s Guide to the Best Home-Based Businesses, prepare a business is like sharpen a pencil. Your business activities are not only about how sharp your pencil, but how you use the sharp pencil for your business success.
If you are experiencing such conditions, there are 10 tips from Robert Spiegel that you need to remember and do