Selecting the Business Entity
got an idea and you’re ready to take the next step (or maybe
you’ve even begun your new venture), but you haven’t formed your
business entity yet (i.e., corporation, limited liability company,
limited liability partnership, limited liability limited partnership,
subchapter S corporation, partnership, or sole proprietorship).
Selecting the entity type is an important facet of how your
company will operate.
Issues that you should consider before picking an entity type
1) amount of personal liability the owner’s of the company
are willing to accept; 2) amount of control the owner’s wish to
exert over the company; 3) number of owners of the company (i.e., is
the plan for the company to go public or will you be the sole
proprietor indefinitely?); and 4) tax issues and consequences.
Plan for the future and the entity type will help you get