For many new business owners, the reality of their venture is a dream come true. Whether you are starting up a storefront in a downtown area, or you are creating a company that will spur economic growth and add jobs to the local economy, you are likely fulfilling a personal goal and aspiration. It's an exciting time, but it's also a pivotal moment for your new career.
There are many decisions that need to be made, and selecting the right options for you and your business can ensure your long-term success. An expert business law firm can help you create a structure for your business that is viable in both the short- and long-term.
According to an article published on Entrepreneur.com, "It's important for business owners to seek expert advice from business professionals when considering the pros and cons of various business entities."
Business structure options to consider are as follows:
- Sole Proprietorship - In Las Vegas and throughout the country, sole proprietorship is one of the most common types of business structures. It is a relatively simple structure, but it does place an increased liability on the business owner. In a sole proprietorship, the owner of the business has control over the structure and operations of the business. In addition, the business owner is responsible for all of the financial assets of the business. The business assets become a personal liability.
- Partnership - A business partnership is formed when at least two individuals decide to create a business entity together. While partnerships can be quite beneficial, it's important that the parties forming the business work with legal professionals in order to draft a partnership agreement. This should be done immediately upon agreeing to form the partnership, as it can help avoid challenges and frustrations regarding the business in the years to come. While there are tax benefits to forming a business partnership, it is important to recognize that all partners are held liable for all of the financial business assets.
- Limited Liability Company - Often referred to as an LLC, this is a business structure type that is becoming more common in the local area and throughout the country. It combines the benefits of corporations and business partnerships, yet at the same time eliminates the personal financial responsibility that is found with most other business types and structures.
- Corporation - A corporation is different from the other business structures that are available, in the sense that it creates a separate entity rather than defining the role and responsibility of the business owner. With a corporation, the owner is not necessarily in charge of the daily actions and responsibilities of the business itself. An organizational structure can be put in place in order to conduct the daily business operations of the corporation. The corporation itself is legally responsible for its actions, and can be held liable for those actions. However, the person who creates the corporation is not held personally responsible for the financial assets of the corporation, which is one of the largest advantages of utilizing this business structure.
Hire the right outside legal counsel to start out right
When creating and implementing your business structure, you will benefit greatly from the expertise of business law professionals who understand the needs and requirements of various types of businesses. In the infancy of your business venture, it can seem there are challenges to maneuver and important decisions to be made around every corner. Working with legal professionals who specialize in business law will allow you to make the best decisions not only for your business but also for your personal life.