• Home
• Firm Profile
  • Mission Statement
  • Core Principles
  • Privacy Policy
  • Staff Bios
• Services
  • Attest Services
  • Advisory Services
  • Business Management and Accounting Services
  • Individual Services
• Industries
  • Overview
  • Common Interest Realty Associations
  • Construction
  • Credit Unions
  • Government Contracting
  • Hospitality Organizations
  • Not-for-Profits
• News & Articles
  • Our Newsletters
• Resources

• Careers
• Contact Us
• Login
  • Web Organizer
  • Web Portal
  • NetClient

Meeting the Needs of Today’s Entrepreneur

When trying to gain momentum in the early stages of your business, the initial decisions you make as an entrepreneur can be the most critical in determining your future success. Without the proper tools and expertise, you are overexposed to a variety of risk factors.

One of the first choices an entrepreneur must make when starting a business is to decide which type of entity to establish.  While selecting the right type will not guarantee success, choosing the wrong type can increase the likelihood of failure.  In most cases, the two biggest issues in choosing an entity are:

1. Probability of incurring liability and the need for liability protection
2. Need for capital to fuel growth. Other issues include your management structure, capitalization, profitability projections, transferability of ownership, administration and tax issues.

Below are seven basic entities from which you may choose.

• Proprietorships
• General partnerships
• Trusts
• Limited partnerships
• Corporations
• S-Corporations
• Limited Liability Companies

Keep in mind that failure to follow the administrative regulations of your state could pierce the liability shield set up by your entity, and that inadequate planning could prove disastrous from a tax standpoint. Be scrupulous in keeping your personal affairs separate from those of your entity (have separate bank accounts, separate accounting systems, document your activities, etc.), or your entity may be considered not to exist in a legal dispute.

Different entities are used to achieve different combinations of objectives, so it is important to have a good idea of exactly what you want to accomplish and what risks are involved. To narrow the choice, focus on your key objectives. Meet with your financial and legal advisers for advice on selecting the entity that is right for your business.

Additional Resources

.(JavaScript must be enabled to view this email address)