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Get the right business structure to start off right

On Behalf of | Aug 2, 2019 | Business Law

You’ve always wanted to open a business, and what better place could there be than the busy area of Florence, Kentucky? You’re close to Cincinnati, a major airport, the highway that links multiple states and major tourist areas. If your company is set up correctly and you market yourself well, there’s a lot of money to be made in the region.

When you start a business, something that you’ll need to decide on is the kind of business structure you’d like to use. Some common business structures include:

  • Partnerships
  • Sole proprietorships
  • Limited Liability Companies
  • Corporations
  • Cooperatives

Many people start out with sole proprietorships because they are not complicated. This set up gives you control of your business and doesn’t require any other kind of business registration. Your business won’t be a separate entity with a sole proprietorship, which can be a problem if something goes wrong. If you’re sued or your business fails, your personal property will be in jeopardy.

It’s generally better to choose a type of business set up that separates your business as a separate entity because it helps protect you against liability. For instance, a limited liability company (LLC) protects you from personal liability. If you’re sued or go bankrupt, your personal assets can’t be taken from you as a result of the business’ struggles.

If this is the first time you’ve set up a business, it can be helpful to meet with an attorney to discuss what you need to have a strong business structure. Our site has more on what you can do to set up your business.