Your New Business - Choosing the Right Structure

So you're starting a new business? That's great! This is probably one of the most exciting times of your life. Every aspect of your new business will be an adventure, and also a challenge. You can't wait to be your own boss, set your own hours, and not have to punch that time clock, or work the 9 to 5 in a boring office. But have you thought about the legal form on which your business will be structured? Whatever legal form you choose for your business may hinge upon its' success or demise. Some ways in which to determine this would be to ask yourself several questions such as, "Can I make rapid decisions on my own?", "Am I able to raise additional capital when needed?", "Do I know and understand how to compete in the marketplace?". The answers will help you find the right structure for your business.

Basically there are three legal structures to choose from when starting your business: sole proprietorship, partnership, and corporation. These three legal forms are different but one is not better that the other. All three have their own advantages and disadvantages; it is up to you to decide which one will work best for your business. Some more questions you might ask yourself: "How much money will I need for start-up capital?", "How much outside help if any will I need to run the business?", "How will I be able to secure money later to expand?", "Am I OK with taking risks, and can I limit my liability reasonably?", "What about paying taxes, how much will I have to pay?". All of theses questions and answers should be in your mind, or on paper to help you decide the future of your business.