doing business online
How to Protect Yourself While Doing Business Online
By Alison Guriani 
There are better options. Each has different businesWe looked at sole proprietorships and general partnerships, and why they were a poor choice for anybody starting a business. s, personal, and tax consequences. You will need to decide which is best for you.
LLC (Limited Liability Company) -
LLCs have several benefits that make them attractive, especially to those starting their first business. They are easier to manage than a corporation, yet offer the same liability protection. Even though they are easier, it is still important to hire an attorney for this task. If something were to happen to your business, it would be liable, but not your personal assets.
An LLC can be started by one person, or a group of people. Officers can be appointed, as there are few limitations on how an LLC can be run. There is no double taxing on an LLC like other corporations, as the taxes are attributed to individual members of the LLC.
S Corp (S Corporation) -
An S Corp offers the same tax advantages as an LLC, but is a bit more complicated. In an S Corp there are shareholders, a board of directors, and officers. It is common for shareholders in an S Corp to appoint themselves to the board. Their main function is to select officers who run the day to day operations of the corporation. Board members are also responsible for making major decisions that affect the corporation.
C Corps (C Corporations) -
A C Corp is for those who want to start a really big business; complete with stockholders, public offerings, pay passive investors and so on. If your legal or financial advisor has suggested this may be the best route for you, follow their advice. Though it is too lengthy of a subject to cover here, it is worth noting they are another possibility.
Limited Partnership -
The purpose of a limited partnership is to allow people to invest without having any control over the business. In exchange for no control, limited partners also have no liability. The general partner does have a responsibility to act in the best interest of the limited partners.
The limited partnership can own property, hire employees, and have a business. However, the limited partners cannot be involved in the day-to-day running of the business (unless they are employees or officers of the general partner). It's obvious that this can be a complicated arrangement for a business, but there are certain instances where it makes sense.
There you have several better options for starting a business. Whichever you choose, it is important that you consult with an attorney. Even if you can fill out the forms online, you will be best served by an attorney who understands the forms. Your professional future is not something you want to guess about.
Alison G.
Legal Services at a reasonable rate
Helping online entrepreneurs protecting their dreams
<< Home Internet Marketing Strategy