Starting a new business can be a daunting venture, yet the personal and financial rewards can be extensive. Thus, many find the challenge to be worth the investment. Once the decision to begin a new business is made, there are a number of decisions that the Ohio entrepreneur needs to make in the business formation process.
Other than what product or service the business will provide, perhaps the most important decision the entrepreneur will make is what structure the business will take. This decision can impact the required documentation the business will need, its recording keeping needs, the taxes it will be responsible for paying and even the liability the business and its owner or owners will incur. Through a careful analysis of the different types of business structures, and consultation with experienced legal counsel, the entrepreneur can make an informed decision.
While the sole proprietorship may appear to be the easiest to establish, there are other options that may provide the protection desired. With a sole proprietorship, the business owner remains personally liable for the business and its debts. However, with other business structures such as a corporation, limited liability corporation or limited liability partnership, some protection is provided.
The business formation process can be an exciting time for the Ohio entrepreneur. Throughout the process, he or she is often overwhelmed with data regarding what type of business structure and business plan is best. The answer to this is not a simple one; it depends upon the business, its ownership and the desires of those involved. Experienced legal counsel can be a great asset throughout the formation and implementation process.
Source: smallbusiness.findlaw.com, “Choosing a Legal Structure“, Accessed on May 25, 2018