The choices made during the initial stages of a Florida business have implications for future operations and the direction of the company. One of these decisions is choosing the right type of structure for your company. The legal structure impacts things such as taxes and your personal liability for business debts, and doing your research can ensure that you make the right choice.
Choosing the appropriate business structure depends on things such as your goals for your business, the type of company you have and more. Your decision will also affect your personal liability for business debts as well. It is in your interests to carefully consider the benefits and drawbacks of each choice and consider the potential long-term implications for each option.
What are your options?
As you consider the most appropriate way forward for your company, you will find benefit in learning about the various types of business structures and their potential drawbacks and benefits. Your options include:
- Partnership – This is an option when two or more people are starting a business together. Partners will have to each report their share of profits on their tax returns.
- Sole proprietorship – This is a business structure option when one person is starting a company. The owner will report profits on his or her tax returns and be personally responsible for business liabilities.
- Limited liability company – This option limits the personal liability of the business owner, but the owner has to personally pay taxes on business profits.
There are other types for business structures, but these are some of the most common choices for small business owners. There are implications for your taxes and your own personal liability, and thinking long-term will help you avoid potential setbacks and complications down the road. You will also want to consider your hopes for future expansion and the potential for future company growth.
Starting off on the right foot
Your choice for business structure will set the course for your company. You will want to start your new operations off on the right foot, and one way you can do this is by seeking legal guidance when making important choices during the formation stage.
You do not have to walk through the formative stages of your business alone. An assessment of your case with a business law attorney can help you make choices that will prove beneficial for your company for years to come. There is a lot at stake, and you would be prudent to do everything possible to start off on the right foot.