Starting your own new business? The dream may have turned into reality due to downsizing at a job. Even as a small business owner, it’s important to make sure you are up-to-date with recent developments in business law to set your new business apart from the rest.
Choosing a legal structure may be one of the most important issues at the start-up of your new business. The three basic structures are a sole proprietorship, partnership, and a limited liability corporation.
A sole proprietorship is an unincorporated new business organization that’s owned and operated by an individual. Sole proprietors do not run their operations through separate legal entities like corporations do.
When two or more people decide to join together to carry on a trade or new business, their relationship is a partnership. Usually, each partner contributes to all parts of the business including money, property, and labor. In return, each partner shares in the profits and/or losses of the business.
A corporation is an independent legal entity owned by shareholders, meaning that the corporation itself, not the shareholders that own it, is held legally liable for the actions and debts incurred by the business.
Each legal form has its own unique characteristics; others not discussed here hold other benefits to the owners. Your goal is to choose the structure that works best for your new business. As a small business owner, not paying enough attention to the legal side of your business can be a big mistake. One wrong move or oversight can put your business at risk.
At Wynn & Wynn we have knowledge of appropriate business structures and business law matters. Our clients trust us because of our attention to detail and our hands on approach. We understand the legal needs of your business. Contact us today at 1-800-852-5211 to learn more!