At the beginning stages of owning and operating a small business in Ohio, there are various financial and legal decisions you will have to make. One of these choices is determining which type of structure is most appropriate for your business. This choice depends on your goals and the type of business you want.
Identifying the right type of business structure is not an easy process. It can be tough to make important choices that will have a direct impact on your business for its duration, but you do not have to make these decisions on your own. Many business owners find great benefit in seeking experienced guidance for the formative stage of their company.
Your choices for business structure
The business structure, also called legal structure, will determine several things that are critical for your company, such as taxes, employees and more. Some of the choices you have for business structure include the following:
- Partnership: This is a business owned by two or more people. Each partner will share liability for debts and financial obligations of the business.
- Sole proprietorship: This is a simple business structure that is appropriate when one person owns the company. The owner pays taxes on profits and is personally liable for any business liabilities.
- LLC: An LLC is more complex, but the owner or partners would not be personally liable for business debts and obligations. However, owners will still pay personal income taxes on profits.
A careful evaluation of your business and your goals as a business owner will help you understand the specific options available to you. A thorough evaluation of your proposed operations will allow you to make the right choice of entity for your company. This is an important decision, but many business owners find it beneficial to seek help as they form and set up their company.
A strong future for your company
Owning and operating a small business can be complex, but making smart decisions in the formative stages can help you lay the foundation for a prosperous future. If you are starting a business, you would be wise to first ensure you address your legal concerns.
Selecting the entity for your company is a significant legal choice, and you may be unsure of which one is best for your business. You will find it helpful to seek help and guidance before you move forward with any steps that will impact the long-term operations of your company.