Do you know what Legal Entity is right for you?
Avoid The Terror Of Being Burned By Your Own Business (keeping it biblical per our theme?)
The HOT Secrets To Keeping Your Business Safe (cosmo variation)
Hear these 3 horror tales of choosing the wrong entity type, and how to avoid them
- Simple steps/How to choose whether to form a Sole-Proprietorship, Partnership, LLC, Sub-Chapter S Corp, or Corporation (and what the differences are)
- How to avoid the pitfalls of choosing the wrong entity type
- Easy steps to choose the right entity type for your credit repair business.
Take a look at these 4 topics that will help you understand why you need a Legal Entity and find out which one works best for you!
Maybe something to the effect of:
You can’t sleep — starting a new company can be scary, even if you’ve done it before. The bills are piling up from your new venture and the last thing you need is the prospect of some frightening liability lurking around the corner. During the startup process there are going to be a bunch of choices to make, and things you’ll need to prioritize your attention to. Certain things can be delegated, others can be put off, spending time to choose the correct entity MUST be a priority. Everyone from your neighbor to your know-it-all uncle will have an opinion on the subject of using an LLC, S-Corp, C-Corp or DBA to protect your assets and facilitate the best tax advantages possible. One thing is for certain, the old adage of building a house on a solid foundation is critically important here.
That being said, whether you’re getting into business for the first time or you’re new the credit repair and distressed consumer space, a good legal structure will not replace the need for a solid business model and no configuration is completely risk free. Often the biggest mistakes made by new businesses is in placing a false sense of confidence in what might be termed “entity gymnastics”. This is especially superfluous if you’re not asking yourself or the legal professional you’re working with the right questions. In spite of the many brilliant things that can be done – often times the burdensome requirements of say a variety of C-Corp configuration can make the juice not really worth the squeeze. So relax, we’ve done some of the leg work for you and have provided some great resources to make your decision a more informed one. Let’s take a look some of the things to consider when making the best entity choice for you, your business and your family.
The reason asking the right question is important is because choosing the right entity is not a one-sized fits all answer, some of things you may want to consider are:
- Founders, partners, investors, and shareholders roles, responsibilities & benefits
- Do you plan on raising any capital either through banks or private investors
- How to maximize tax benefits based on overall financial picture
- How much risk is involved in the venture
- Protect best against partnership disputes
- Up to date tax laws as well as any other legislation on the horizon
- State specific tax rates and bankruptcy provisions
With that said, below are 4 articles that we found which answer many of the tough questions you may have, and will probably bring up a couple of considerations you may not have identified yet. We hope these are helpful to you:
If you’re new to the small business world or need to freshen up on the different entity types for your credit repair organization, or small business start up this article is a good primer to get you started on which way is up by going into more detail on the various entity types.
Business Entity Break Down.