OK, so you want to start a business, but you’re not sure about what business entity you should operate your business under. Do not worry, not being sure is a good sign that you know there are pros and cons for each business entity choice. Lets review your options:
* Sole Proprietorship – full control and you get all the profits
* General Partner – management and profits shared between partners
* Limited Partnership – general and limited partners share control and profits according to the partnership agreement
* Corporation (Sub C or Sub S) – there are shareholders with ownership rights, elected board of directors, and officers who handle business operations
* Limited Liability Company– members share profits and management based on the operating agreement
All of that information briefly deals with only how profits and the operations or management of the business is handled legally. Who you want to control your business to me is the first step to making your decision on which business entity to choose.
So if you are a person who believes that no one can do it better then you can, then a sole proprietorship might be for you. But not so fast, there are other things you should consider before making that choice. You will need to also consider the liability, taxes, and administration factors. I will not go too in depth because one this would be a ridiculously long post, and two I would suggest you to consult with a legal attorney who specializes in creating new businesses. But, for those of you who are already pretty sure on what business entity you should file your business under, and you do not have the time to set it up we have, “Business in a Box.” For more information on Business in a Box please contact Maven IG via email, email@example.com.
Below is a link to a pdf. file from the GA state government website that give a further in depth overview of each business entity and their pros and cons.