New Business Formation
So you've got a great idea for a new business, or a plan to monetize something you’re passionate about. Congratulations! But what’s next?
You would probably benefit from incorporating, or setting up some type of entity to limit your legal and financial exposure and to take advantage of tax and accounting benefits. You’ve got a bunch of options, each with its own benefits and drawbacks. So should you incorporate? Perhaps a “subchapter S” corporation? Limited liability companies (LLCs) are very popular, and provide a great deal of flexibility. Professional limited liability companies are another option for some types of business. And then there are partnerships, limited partnerships and even limited liability partnerships. The right choice for your business may depend on how you plan to manage and grow your business, whether you will need to give equity to employees or whether or not you plan on bringing in outside investors. And what about your choice of state? Most people have heard of the popularity of companies incorporating in Delaware, but is that necessary (or even desirable) for your business?
By making the right choice now, you can save yourself a lot of headaches (and money) later on.