Have you ever dreamed of starting a business but had to back off because of fear, a lack of knowledge, risks, or possible legal consequences? You were probably confused about which type of business structure to adapt in the first place. Many have trodden the same path before, only to realize they would’ve cleared their confusion if they consulted a business lawyer. In this article, I’ll guide you through the various types of business structures and what they’re for. I’ll also discuss what factors you need to look into when choosing lawyers to work with. Let’s begin turning your business idea into reality.
Defining Different Business Structures
Different business structures have various benefits and legal consequences when things go rough. Most businesses actually begin with one form and evolve to another as they grow. Essentially, your business could start as a Sole Proprietorship and later converted into a Limited Liability Company (LLC). What’s important at the moment is to understand the requirements for each type and learn their legal consequences.
A sole proprietorship is the simplest type of business ownership. You may not have realized this before, but you may already be running one. If you have been fixing people’s fences, doing painting jobs, or even writing articles for someone and got paid, that was it. You are essentially a sole proprietor.
Unlike LLCs and corporations, you don’t have to register yourself with the state. Still, you need to report your