by Babs ‘O’ Reilly
(Miami Beach, Florida, USA)
There are many forms of business ownership that you may want to review before you commit to anything. Starting your own business requires a lot from you. You have to provide the capital and effort. Being the captain of the ship, you’ve got to know how to lead your vessel on the right direction.
Everybody can dream of be an entrepreneur but not everyone will be successful. It requires talent, skills and strong personality to be able to be successful. You will have a lot of decisions to make, to start with what kind of business you want to venture into.
The Different Forms:
Just to give you an idea, here are some of the most popular structures of business ownership that you may take into consideration. In making your decision, you have to look into your finances.
You need to remember that all your choices will have corresponding legal, financial and personal implications. You need to consult with a professionals what will suit you best. You may want to go to an accountant and a lawyer to help you decide. You need to make sure that you tell them everything about your situation it may affect the overall scheme of your future business.
1. Sole proprietorship. This is the easiest form because the equation is simple. You are your business. The latter will cease to exist once you die. This type has the fewest number of regulations among all kinds of business.
2. Nonprofit organizations. The filing requirements for this kind depend on what type of an organization is being run. To start a charitable organization, you need to appoint a board of directors as well as incorporate.
3. Corporations. These are governed by a group of Bylaws which are filed together with the Articles of Incorporation. For this type, the owner’s can secure financing, bank accounts and other assets.
4. LLC or Limited Liability Company. This is becoming one of the more popular choices. This is not a corporation but the LLC has the protection remuneration that is being enjoyed by a fully incorporated businesses.
5. LLP or the Limited Liability Partnership. This is similar in many ways to the general forms of business ownership. The difference lies in the situation when one of the partner dies, the LLP will automatically be dissolved.
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