Choosing the right entity structure for your business isn’t always as simple as it should be. You want to protect yourself against liability, but you also want to have the tax protections you need. Looking at the different options, you’re not sure which is right for you. You’re not alone in this confusion. Many people find it complicated to choose the right entity structure.
To set your business in motion, you will need to register it with the state. Prior to that, you have to come up with the correct business entity. There are legal and tax considerations to think about as well as the personal needs you have. You may want to choose one of the following business structures based on your situation:
- General or limited partnership
- Sole proprietorship
- Limited liability company
Once you choose a business structure, what happens next?
After you choose a business structure, you need to register it with the state. Each one of these entities has its own registration requirements. There are different fees associated with registering as well as annual filing requirements that you must remember to complete.
This all sounds complicated: Who can help?
If you are getting ready to set up a business, it’s time to work with someone who is familiar with business entities and structures as well as the implications of each. Our website has more information on business entities and what you should consider before choosing the way your business is set up. Your attorney can talk to you more about the options you have and how they could affect you and your business in the future.