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Starting a Business?
There is a lot to consider when starting a new
business. One of the most important is the formation of the
business. There are a number of ways you can organize your business,
whether you are going it alone, or with others. Here are some ...
Business Organizations
- Sole Proprietorship - This is the easiest way.
The most you would need to do is file a fictitious name statement with the
county, which will allow you to operate under a fictitious name, and open a
bank account.
- Partnership - You could set up a partnership with
one or more people. This could be a general partnership or a limited
partnership. It would require that you draft some kind of partnership
agreement, and file with the State.
- Limited Liability Company (LLC) - This is a cross
between a partnership and a corporation. It allows you to be taxed like
a partnership, but gives you some protection against personal liability for
debts or acts of the company. Requires filing with the state and
preparing articles of organization and an operating agreement between the
partners.
- Corporation - Some businesses cannot operate as an
LLC, such as real estate agents or companies. Those companies must
incorporate if they are looking for some limited liability. A
corporation can be set up as a "C" or an "S" Corporation. The way they
are taxed will be dependant upon this selection. Requires articles of
incorporation be filed with the state, and corporate By-Laws be drafted and
adopted by a meeting of the officers and directors of the company.
There are many factors that must be
considered during the formation of a business. You should seek some
legal advice in the planning of a new business, or in determining if you
should change the form of a new business.
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Law Offices of
Ken Koenen
