I am a HUGE fan of small businesses. The ingenuity, creativity, and entrepreneurial spirit of small business owners makes them a favorite group of people to hang out with.
One thing I see in most small business owners is a passion for the work they do. One thing I see lacking in most small business owners is knowledge of the “business-side” of doing business. With this series, I will be teaching some principles that have helped me be successful in my small business.
Part Two – Obtain Legal Recognition/Organization
What type of business will you be? There are a variety of legal business arrangements and each has its pros/cons depending upon the type of business in which you are participating.
You can be a sole proprietor, a partnership, an LLC, a non-profit organization, or a corporation. Within each of these categories that are a variety of subsets of business.
It is important that you obtain wise counsel as to the best legal structure for your business. It is worth a few hundred dollars to obtain legal/tax counsel on this subject.
For my small business, I have found that an LLC was the best structure. As I start several more businesses, I am looking at additional LLCs, a partnership, and a corporation. BUT the key here is that I am fully exploring the pros/cons of each
There is actually a terrific on-line resource that helps folks determine the best structure for their business and then helps them take the next steps! It is called LegalZoom.
There are a ton of free educational resources available at their site as well. Check it out!
The key in this step is to structure your business such that it maximizes its revenues and minimizes its tax burdens and liabilities.
I know that all of this legal incorporating stuff can be joy-robbing for a lot of small business owners, but it is so necessary for long-term business success.
I challenge you to take some time TODAY to learn about what the right business structure is for you and then take action!