Forming your Business

As promised yesterday, today we are going to talk about forming your business and the legal structures you can use. We will be talking about each one of these structures in more detail within the coming weeks, so that you can learn which one is best for you and your business.

• Individual/Sole Proprietorship: This is the simplest way to start a business. It means however, that you personally are responsible for your business. If your business owes taxes, your personal assets, such as your home can be taken from you. Many times, small businesses are easily started like this, and personal assets are not affected. More on this Business Structure on August 17, 2008.
• Partnership: This is the same as an Individual/Sole Proprietorship, except one more person is added as a business owner. The details of a partnership are hammered out with the paperwork, such as who owns what, and who is responsible for what. More on this Business Structure on August 18, 2008.
• Limited Liability Corporation: This type of business is a mixture between a Proprietorship and Corporation. This means that you can legally be held liable for your business on a certain level, while keeping it separate from you on another. More on this Business Structure August 19, 2008.
• Corporation: This is the most complicated type of business to start. You most definitely need legal support to do this. This entity is completely separate from your personal assets, and you as an individual. More on this Business Structure August 20, 2008.

Take a look at this video on different business structures, including the advantages and disadvantages of each form.

Please share with us your experiences with forming businesses. Which ones have you had experience with, and what can you offer for advice as which ones are better and why?