Sunday, February 1, 2009

Business Basics 101-Deciding on a structure

Forms of Ownership One of the first decisions that you will have to make as a business owner is how the company should be structured. This decision will have long-term implications, so consult with an accountant and attorney to help you select the form of ownership that is right for you. In making a choice, you will want to take into account the following:
  • Your vision regarding the size and nature of your business.
  • The level of control you wish to have.
  • The level of structure you are willing to deal with.
  • The business' vulnerability to lawsuits.
  • Tax implications of the different ownership structures.
  • Expected profit (or loss) of the business.
  • Whether or not you need to reinvest earnings into the business.
  • Your need for access to cash out of the business for yourself.

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