What is the right structure for your business?

On Behalf of | Mar 26, 2021 | Business Law

Running a business is obviously not a casual endeavor.

In fact, establishing a commercial enterprise, nurturing it through initial phases and ultimately ensuring both its long-term viability and sustained profits is an arduous task for entrepreneurs and established business principals alike.

Yet they routinely embrace the challenge. Legions of company owners in Pennsylvania and spanning the country cannot envision any other opportunity as bracing and potentially rewarding as business ownership. The desire to kindle a creative spark and merge inspiration with sweat equity to create a business form both unique and profitable is a deeply ingrained American mindset.

There is this flat fact to contend with for aspiring company owners, though, as highlighted by one authoritative Pennsylvania legal source addressing enterprise creation and profitability: “Running a business can be extremely difficult.”

Much of that difficulty links directly to the business form referenced above. Business principals are presented with many choices when they seek to transform their creative ideas from a blueprint stage to an operable entity. Their options are spotlighted immediately below.

Entity formation: What type of structure should be selected?

Do you have concerns as an individual starting a new business with potential risks you could face for liabilities your enterprise might incur? Do you envision your company as remaining relatively small and easily controlled in the future or as a creation that will continue to grow? Will material capital infusion become a future issue? How about tax-linked complexity? Do you see your business taking on significant debt?

All those issues and more must routinely be considered by individuals tasked with an entity-choice decision, as noted in an in-depth overview of business structures. That article underscores that, “Each business structure has its pros and cons, and since every business has unique needs and goals, you need to do your research before choosing.”

A proven commercial law legal team can help with that. Seasoned business attorneys routinely provide candid counsel and diligent representation to diverse and valued clients concerning logical entity selection.

There are many American business structures, with these being among the most common and frequently selected:

  • Sole proprietorships
  • Partnerships
  • Limited partnerships
  • Limited liability companies
  • Corporations

Those varied forms all differ markedly in particulars, and their relative strengths and offsets must be examined in tandem with an enterprise creator’s unique needs. The above-cited overview duly stresses that there “are plenty of factors to take into consideration when choosing a business structure.”

An experienced business organizations legal team can provide further information.

FindLaw Network