“What legal form your business takes can have significant implications on your personal risk in the business as well as your potential for financial returns.
One question that always needs to be answered when starting a business is ‘What legal form of organization makes sense?’ This may be a more important question than you think, as legal form can have significant implications on your personal risk in the business as well as your potential for financial returns. You will want to get some advice from an attorney prior to making a final decision, but what follows here are some issues that will help you understand the differences between forms.”
– I always get asked this question so here is an article for you about choosing the right legal form of your business. Although I think Jay may be discounting Sole Proprietorships and partnerships considering that there are 17,575,643 Sole Proprietorships in the U.S. In fact, I remember when I was starting a business and my CPA asked me what liability was there for me. Did I have any sales yet? Was I doing something that could get someone hurt? What were my personal assets (you can’t squeeze blood out of a turnip after all)? He told me to start as a sole proprietor and then incorporate when I reached about $75,000 in sales. Of course, you should always check it out yourself. Never rely on the word of a writer, always go to a professional. After all, all of us are unique as are our businesses. -ed.
P.S (There are more Sole Proprietoships then any other business type. LLC’s are the fastest growing business type. Check it out here.)