Starting a business? Start here!

If you’re reading this, I’m assuming you’ve decided to start a business, or are at least entertaining that idea. Starting your own business is an act that most tend to avoid and/or fear. So, the fact that you’ve gotten this far is already a wonderful and courageous step in the right direction. Owning a business is a wonderful thing and know that you can do it! There is plenty of information and even more misinformation out there about how to start your business, what type of business to start, how to market your business, how to protect your brand, etc. It can all be very intimidating. Don’t be intimidated and seek out professional sources for your information. In this blog post, we’ll simplify one aspect of starting your own business in a non-intimidating and digestible manner. The first step to starting your business is forming an entity. Here, we’ll discuss the main entity types and some characteristics about them that will help you decide if that’s the right one for you. The four types of entities we’ll discuss today are: sole proprietorship, partnership, corporation, and limited liability company.

  1. Sole Proprietorship- this is an entity that is run by a single individual for the sole benefit of that individual. The business and the owner are not separate legal entities.
  2. Partnership- this is an entity that is formed when two or more people associate with the purpose to carrying out business for a profit.
  3. Corporation- this is a legal entity separate from the owners and is governed by state law. In this entity type, owners are shielded from personal liability for corporate acts.
  4. Limited Liability Company- this is the most favored entity type for small businesses as it contains a mixture of the benefits afforded to a partnership and a corporation.

Please view my FREE brand protection guide (link here) for more information about entity formation and other basics about starting your own business. I wish you the best of luck and encourage you to go out there and begin this process with enthusiasm and optimism!

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