Page 13 - THE NOTICEBOARD AUGUST EDITION 61
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August, 2020 Page 13
October, 2008
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proprietorships can be a good
LAUNCHING YOUR BUSINESS choice for low-risk businesses
and owners who want to test
to get a tax ID number and file their business idea before
for the appropriate licenses forming a more formal business.
and permits.
Partnership
Choose carefully. While you Partnerships are the simplest
may convert to a different structure for two or more
business structure in the people to own a business
f u t u r e , t h e r e m a y b e together. There are two
R esearch the best place to restrictions based on your limited partnerships (LP) and
common kinds of partnerships:
location. This could also result
locate your business
limited liability partnerships
in tax consequences and
You'll need to register your unintended dissolution, among (LLP). Seek further clarification
business, pay taxes, and get other complications. from a business consultant.
licenses and permits in the Consulting with business Limited liability company (LLC)
place you choose to locate your consultants can prove helpful. A Limited Liability Company is a
business. Where you locate Review common business legal entity that's separate from
your business depends in part structures its owners. They can make a
on the location of your target Sole proprietorship profit, be taxed, and can be held
market, business partners, and A sole proprietorship is easy to legally liable.
your personal preferences. In form and gives you complete Limited Liability Companies
addition, you should consider control of your business. Sole offer the strongest protection to
the costs, benefits, and its owners from personal
proprietorships do not produce
restrictions of different liability, but the cost to form a
a separate business entity. This
government agencies. corporation is higher than other
means your business assets
Choose a business structure and liabilities are not separate structures. Limited Liability
The business structure you from your personal assets and Companies also require more
choose influences everything liabilities. You can be held extensive record-keeping,
operational processes, and
from day-to-day operations, to personally liable for the debts reporting.
taxes, to how much of your and obligations of the business. These companies have an
personal assets are at risk. You Sole proprietors are still able to advantage when it comes to
should choose a business get a trade name. It can also be
structure that gives you the hard to raise money because raising capital because they can
r i g ht b a l a n c e o f l e ga l you can't sell stock, and banks raise funds through the sale of
protections and benefits. are hesitant to lend to sole stock, which can also be a
Your business structure affects p r o p r i e t o r s h i p s . S o l e benefit in attracting employees.
how much you pay in taxes, your Cooperative
ability to raise money, the A cooperative is a business or
paperwork you need to file, and organization owned by and
your personal liability. You'll operated for the benefit of
need to choose a business those using its services. Profits
structure before you register and earnings generated by the
your business with the state. cooperative are distributed
Most businesses will also need among the members, also
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