So now that you have decided to start a business you need to decide the form of business. This is not an easy answer. The form of business will impact the business and you personally. It is best to get input from both your attorney and your accountant who can advise you based on your specific situation. While the rest of this article is not intended to be legal or tax advice, here are some general guidelines to get you started.
The business is important for many reasons:
- it affects you and the business on a state and Federal level
- it affects how the business , and you as the owner, pay taxes
- it has legal implications affecting liability exposure
- it may even impact your ability to get insurance coverage, borrow money, lease space and hire employees
The major forms of business are sole proprietor, partnership, corporation, and limited liability company. All have pros and cons that should be considered in light of your specific needs.
