Imagine for a moment that you are starting your own business. Let’s say that you want to sell athletic sports equipment in your city. So you coordinate with the producers of the equipment and work with distributors to make your business vision become a reality. We’ve greatly simplified the process here, but let’s say that at this point, you are ready to open your doors and sell some gear.
That’s all it takes, right?
Well, not exactly. As we mentioned above, we greatly simplified the process of starting or forming a business. One of the steps we left out was choosing a business entity. This a critical step, even if you aren’t opening a brick-and-mortar store. It is important if you are buying real estate as well. Your business structure is vital in either scenario.
So what types of business entities are there? One of the most common is a sole proprietorship. It offers little or no legal protections to the owner, but is simple and easy to establish, allowing you to open your doors very quickly.
The more complex business entities are partnerships, limited liability companies and corporations. Depending on what type of partnership, LLC or corporation you choose, the legal liabilities that you, as an owner, assume will differ. But in any case, these more complex business structures can offer a wealth of legal protections and other benefits. If you are starting a new business, then you need to establish your business structure. At Lindhorst & Dreidame, we can help you with this vital step.