In business, as in anything of great importance, success is the result of proper planning. Setting a solid foundation for your new business is likely the most important economic decision you will ever make.
Choosing the Best Structure for Your Business
Sole-Proprietorship – The IRS defines a sole-proprietorship this way, “A sole proprietor is someone who owns an unincorporated business by himself or herself.” Sole proprietorships are simple, common and easy to operate.
Non-Profit – According to Wikipedia, “A nonprofit corporation is any legal entity which has been incorporated under the law of its jurisdiction for purposes other than making profits for its owners or shareholders.” This is the best business choice for those who intend to do charitable work.
Limited Liability Company (LLC) – In Oklahoma, forming an LLC is quick, affordable, and simple. After researching the availability of your company name, you must then register with the Secretary of the State. A top Tulsa attorney will help you file the necessary documents with the state.
Partnership – Law.com gives the legal definition of a partnership as, “a business enterprise entered into for profit which is owned by more than one person, each of whom is a partner.” Careful consideration of the balance of power in the relationship is needed to get off to a good start.
Limited Partnership – The Free Dictionary explains limited partnership as, “a special type of partnership which is very common when people need funding for a business, or when they are putting together an investment in a real estate development.” As with any other start-up, we must carefully consider the amount of risk we are willing to take before moving forward.
Corporation – Corporations have a few advantages over other business structures. First, they benefit from low corporate taxes. But more than that, a corporate structure insulates you from personal risk when doing business. In addition, corporations generate profits for their investors. Corporations are the most solid business structures you can create.
If you need help choosing the best structure for your business, contact Heskett & Heskett.