Determining what kind of business structure is right for your needs can often be confusing. One of the most important decisions that new business owners make is selecting their ownership structure. When determining what type of entity will fit your business best—limited liability company (LLC), partnership, S corporation, or C corporation—consider such factors as raising capital, control, legal liability, and tax benefits. Also, establish a back-up plan because once you have made your decision regarding which entity to choose, changes in ownership, tax law, or the economy may make it necessary to convert to an entirely new type of entity.
HOW WE CAN HELP
- Prepare detailed initial business plan to clarify your marketing, management, and financial goals
- Estimate your start-up capital needs, and identify start-up and backup capital sources
- Evaluate and quantify your borrowing power.
- Select a business structure that best fits your needs by evaluating tax advantages, legal exposure, ease of operation and portability .
- Select the right accounting software by evaluating your budget, needs and hardware.
- Prepare a Cash Flow Budget so you know exactly how much money you need to keep the business alive each month for the first few years.
- Establish procedures to monitor and control costs.
- Prepare and file your application for your Federal Employer Identification Number.
- Prepare and file for state business license and state taxes.
- Identify your business insurance needs.