Tips for Legal Entity Success
With the right resources and prior knowledge, forming a corporation or an LLC can be an enjoyable experience. Here are some insider tips to make the process simple and worry free.
- Ask your attorney or a CPA what type of legal entity would work best for your business model. Discuss the options and characteristics of each thoroughly including tax benefits, liability, operational requirements, and management structure.
- Tax issues and non-tax issues can play a major part so consider how it will impact your business before you choose a legal entity. If you decide to form a new entity, where you form the legal entity will affect these issues.
- Each state has its own laws when it comes to incorporating. Shop around for an ideal location to find the best scenario for your business. Delaware generally offers a law advantage available under the laws of any other states.
- Think about whether you will be raising capital through shareholders or your own sources.
- Determine how much control you wish to have over your business. This answer will help you to determine which legal entity you should form.
- The cost of incorporating a business could range from $99 to more than a couple thousand dollars. Do research and shop around for incorporation services to make sure you are happy with the fees.