The adage “do what you love and it won’t feel like work,” prompts many people to start their own business each year. For many of those individuals finding a way to turn something they love into a business is a dream come true. Unfortunately, there is much more to it than that, starting with what structure the business will take.
The options someone might choose include:
- Partnership
- Limited Liability Partnership
- Corporation
- Limited Liability Corporation
Determining which legal structure the business will take depends on a variety of issues including what the business does. The structure selected will inform many other things about the business including liability should the business face legal action. It could also dictate how business profits will be distributed and who has authority to make certain decisions regarding the business.
To make sure that a business starts off on a good foot, many business owners find it beneficial to work with a business attorney who, after hearing about the business and its goals, can provide information regarding which structures could be best. Taking the time to get this part of the business right could go a long way toward avoiding issues down the line.
Also, initiating a relationship with a business lawyer sooner rather than later makes it easier for that individual to step in and assist with a matter should it arise, since he or she will already be familiar with how the business is run. This in turn could have an impact on how well the business weathers such an incident.