Ok so you've decided to start your own business. Now what type of business do you want to start? Choosing the right business entity is crucial to the success of your business. I chose to form my business as an Limited Liability Company (or LLC) so that I could protect my personal assets and to develop a professional identity with my clients.
Incorporating your business my cost between $150 to $300 depending on what state you live in but the price is far less than what you may incur if you are sued and even worse found liable for any kind of damages. As a sole proprietor, your liability for business debt is unlimited. Personal assets such as your home, personal bank accounts, and other valued assets may be at risk.
However, the best ownership structure for your business depends on the type of services or products it will provide. For example, if your business will engage in risky activities you may want to form a corporation or LLC which can provide limited liability to shield personal assets from business debts and claims.
Check out this comparison chart from MyCorporation.com:
http://mycorporation.intuit.com/business-formations/incorporate.jsp?view=compare
Before you begin operating decide what business entity best suits your needs. Even the smallest business person needs to make sure that they are protected!
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