A new business can be an exciting opportunity for a Michigan or Illinois resident to establish something of their own. Many people dream of leaving their jobs to become their own bosses, but few have the resources to make the jump into entrepreneurship. When they do, they can face a host of challenges if they are not ready to select a business formation plan.
A business law attorney can be a useful asset for a new business owner who does not have the answers to the important formation questions that they must ask. This post does not provide any legal guidance but attempts to highlight some of the issues that individuals can discuss with their business law attorneys when they meet to make their business plans.
Different business structures
Business structures can range from simple to complex and can have different numbers of directors and management-level employees. These are some of the most common structures that businesses adopt:
- Sole proprietorship: A sole proprietorship is tied to its owner and does not create a distinction between the owner’s business and personal interests and liabilities.
- Partnership: A partnership is similar in organization and structure to a sole proprietorship but for the fact that it has more than one owner.
- Corporation: A corporation is a separate entity than its owner or owners. It carries its own liabilities but has different regulatory requirements to operate.
Assessing a business’s needs
A business owner can put their enterprise in jeopardy from the start if they do not make the proper considerations about how to structure it and execute a successful business plan. Consultation with a knowledgeable business law attorney can help an entrepreneur determine their needs and expectations for finding achievement in the business world.