Write a Business Plan
The first step in making a decision to start a business is to write a business plan. Whether big or small every business should have a written business plan before moving forward. If you have never written a business plan before there are resources that can assist you.
There are different business structures/Entitites you can choose when starting your first business. You should have a good understanding of the pros and cons of each type. It is strongly recommended that if you are unsure of which structure is best for your business you should seek professional advice from an attorney or accountant.
- Advantages
- Low start-up costs
- Greatest control by owner
- Minimum working capital requirements
- Tax advantage to small owner
- All profits to owner
- Disadvantages
- Unlimited personal liability
- Lack of continuity
- More difficult to raise capital
- Advantages
- Ease of formation
- Low startup costs
- Additional sources of venture capital
- Broader management
- Limited outside regulation
- Disadvantages
- Unlimited personal liability
- Lack of continuity
- Divided authority
- Difficulty in raising additional capital
- Hard to find suitable partners
- Advantages
- Limited liability
- Flexible management structure and ownership
- Continuous existence
- Legal entity
- Easier to raise capital
- Disadvantages
- More expensive to organize then a proprietorship or partnership
- More regulations then a proprietorship or Partnership
- Advantages
- Limited liability
- Specialized management
- Ownership is transferable
- Continuous existence
- Legal entity
- Easier to raise capital
- Unity of action account having centralized authority in board of directors
- Disadvantages
- Closely regulated
- Lack of continuity
- Charter restrictions
- Extensive record-keeping necessary
- Double taxation, except when organized as an “S” Corporation
- Difficult to liquidate investment
There are other structure also can be considered to determine the best structure for your new business set up.
- https://www.infotaxsquare.com/new_business_setup.htm
- https://www.infotaxsquare.com/what-is-llp.html
- https://www.infotaxsquare.com/what-is-s-corporation.html
- https://www.infotaxsquare.com/what-is-foreign-entity.html
- https://www.infotaxsquare.com/what-is-foreign-entity.html
- https://www.infotaxsquare.com/professional-corporation.htm
- https://www.infotaxsquare.com/professional-llc.htm
- https://www.infotaxsquare.com/nonprofit-org.htm
