Making sure you choose the best small business structure for your company is essential to its success. It is wise to seek the advice of an attorney when making this decision.
Such individuals have years of training and experience in business matters and can help you select the structure that is most appropriate for your company.
Additionally, you must take certain factors into consideration such as formality of operation, transferability of ownership interests, continuity, management, liability, and taxes. When choosing a small business structure, you may wish to consider the following:
This is the most common and least complicated form of business. A formally organized structure is unnecessary, as a single person manages a sole proprietorship.
The company is given a name that is different from the individual’s surname and the proper paperwork must be filed in the county where the business is located. A certificate must be filed with any county in which the company’s business is conducted. You can browse https://www.maitlandlaw.com/business-lawyer-orange-county/ for a small business lawyer.
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With this structure, two people who are acting as partners create the business together. An agreement can be made between the two parties either verbally or in writing. General partnerships fall under the same filing laws as do sole proprietorships.
If a corporation is being developed, an individual assumes perpetual duration, limited liability, transferability of ownership interests, and centralization of management. Directors and shareholders are part of this kind of structure.
This type of business structure is created by two or more members and has one or more limited partners and one or more general partners. A verbal or written partnership agreement is the basis for the company’s operation and methods of conducting business. Although a certificate of formation is necessary, the aforementioned agreement need not be filed with the state.
Limited Liability Partnership
A limited or general partnership may be registered as an LLC partnership. This is advantageous for the purpose of limiting the general partners’ liability.
Numerous choices exist in today’s modern world from which one must choose when creating a small business structure, and an experienced lawyer can help an entrepreneur to make the best possible choice.