technology in classrooms: Building A Business: Which Structure To Choose

Monday, February 13, 2012

Building A Business: Which Structure To Choose | The Mogul Mom

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A common question when starting a business is, ?What business structure is best for me??

First thing: talk to your business accountant about which structure to choose (you want an expert opinion, after all).

Meantime, let us help. Here?s a little more on business entities:

Sole Proprietor: Sole proprietor is a common business entity for moms who run a business at home.? It has the least legal formalities; however, places all liability on you as the business owner. There is no separation between business and personal assets in a sole proprietor entity. If your business gets sued, your personal assets can be tapped into.
LLC: A Limited Liability Company recognizes your business as a separate entity from your personal assets. If you get sued or have legal action taken against you, your personal assets are protected.
Partnerships: General and Limited Partnerships are most beneficial if you have one or more owners of the business. It provides legal protection for each owner.
Corporations: Consider a corporation if you have shareholders in your business. A corporation is a larger entity, often for business that has employees, and offers employee benefits.

Remember, choosing the right business structure is uber-important. Legal protection, taxes, liabilities and more are determined by which structure you choose. Click here to see an awesome infographic that explains in great detail how to choose a business structure.

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