Starting your own business will require a lot for a business owner. Simply having an idea is just the start. Bringing your business idea to fruition through careful execution is an entirely different set of tasks to contend with. While the decision to start a business is certain to be an exciting time, it can be rife with challenges. Afterall, you will want to ensure that your business has the best chance at success. While there are a number of different factors to consider when starting a business, one of the most important is the type of business structure you will choose. Working with a business lawyer, like a business dispute lawyer in Charlottesville, VA, can help provide you with guidance in choosing a business structure, in addition to forming your business that gives you every opportunity at a successful operation.
Choosing a Business Structure
When forming a business, there are a number of business structures to choose from. Each one carries its’ own benefits depending upon the details surrounding the business you are starting. Because of this, it’s important that business owners choose the right business structure when forming their business. You will want to be sure that the business structure of your choosing allows you the appropriate benefits and legal protections. Common business structures a business owner may choose include:
A partnership is when two or more people form a business together. There are primarily two types of partnerships that business owners may choose:
- Limited Partnership
- Limited Liability Partnerships
This type of business provides a business owner with complete control. A sole proprietorship does not require a separate business entity. This means that both your personal and business assets and liabilities are one and the same. Meaning, you could be held liable for any debts incurred by your business.
Limited Liability Company (LLC)
A limited liability company gives business owners the advantage of certain protections. An LLC can help to protect a business owner’s personal assets should the company be faced with legal entanglements such as lawsuits.
A corporation is a company that is separate from it’s business owners. However, they can be far more expensive. A corporation protects owners from personal liability. Because corporations retain profits, it can reduce the taxes that a business owner may be required to pay.
It’s important that you choose a business structure that is most appropriate for your business. Working with a business lawyer can help you to consider all options that make sense when enduring this key process to business formation.
Hiring a Business Lawyer
Starting a business can come with a number of risks. This is a primary reason why it’s so vital that you consult with a business lawyer for the guidance you need during this critical process. The legalities behind business can be complicated, especially when attempting to form your business on your own. Hiring a business lawyer can give you the opportunity to focus on the other key aspects to starting your own business. A business lawyer can:
- Help identify the needs of your business
- Determine the most appropriate business structure
- Mitigate the risk of future legal entanglements
- Ensure that all of the proper paperwork is filed and licenses are acquired
- Handle protect any intellectual property possessed by your business
- Develop operating agreements
When a business owner has put their time, energy and finances into starting a business, it’s important to take every measure towards protecting all that has been built. The last thing any business owner wants is to put the effort into starting a business only to make poor business decisions that impact its ability to obtain success. Working with a business lawyer can provide an entrepreneur with the guidance in starting a company that has every chance at success.
Thanks to Dale Jensen PLC for their insight into business law.