Entity Creation
Do you sell services or goods? Maybe on ebay? Well, you are in fact a business. You have two choices of how to operate your business. Either as a real person or as a fictitious but legally created person. There are many advantages to using the legally created person format.
Most small business entrepreneurs start their business as sole proprietors or closely-held corporations. As time goes on, they begin to see the advantages of incorporating their business. Not just for the business benefits but also for protection of their personal assets from creditors.
Legally created entities include such critters as corporations, partnerships, joint ventures, associations, trusts, and so on. Planning and executing the right business operating entity is vitally important to you!
Some Choices
We will go over with you in detail your choices of entity form, some of which include:
- Limited Liability Company ("LLC")
- Partnership (including the "Family Limited Partnership"
- "S" Corporation
- "C" Corporation
- 501(c)(3) - nonprofit organization
- And others
You really should start planning your exit as soon as you start.