When you have defined your business idea, planned your strategy and secured a sufficient amount of funding, it's time to start looking into some of the practical details regarding starting your new business. By now you should have a good idea of the way you want your business to function, but it's important that you translate your vision into concrete decisions.
Every successful business needs to have strong foundations in order to be successful in the long-term. Choosing the most appropriate business structure will help you to build those strong foundations. The following are some of the main types of business structures that you have to choose from.
A corporation is a structure that creates a clear boundary between the owner and the entity. This means that personal liability is never an issue. However, corporations can be expensive to run.
A partnership allows multiple people to own a company and report the income on their personal tax returns. However, partnerships do not shield owners from personal liability if the company goes into debt.
A limited liability company (LLC)
An LLC is a very common choice for new business owners because it is in many ways a compromise between partnerships and corporations. It allows the owner to be protected by personal liability while allowing them to avoid taxation when income is transferred to an owner.
If you want to form a business in Ohio, it is important that you plan ahead so that you are well-informed. There are many administrative decisions that are vital to the success of any venture.