When you start a new business or a company, you will have many critical decisions to make. One of the first of these decisions involves choosing the right legal structure for your business.
What are your options?
Contrary to popular belief, many small businesses in and around Highland Park, Texas, are thriving. Part of the reason for success in small businesses is that owners have found the right legal structure. Below you will find brief descriptions of four business structures. If you need more details about these options, visit the firm’s pages dedicated to business formation and structure.
- Sole proprietorship: When your business is just starting, a sole proprietorship may meet your immediate needs. It allows you to make your own business decisions, and you can change to a different structure later, if necessary.
- Limited liability company (LLC): An LLC is arguably the most popular business structure because it protects the personal assets of each owner. You can form an LLC on your own or with one or more partners.
- Partnership: Forming a partnership is one of the easiest ways to structure your business. However, you and your partners will have little liability protection.
- Corporation: Although complicated to arrange, corporations provide owners with at least some liability protection. A corporation also offers additional advantages such as business security and an improved ability to raise capital.
Now that you know about these business structures, it is wise to learn more about their advantages and disadvantages. You can research them on your own or consult with a business law firm to help you make the right choice. An unexpected benefit of working with an attorney is that it will provide you with a ready advocate to help you navigate other issues associated with starting a business.