While many startups consider themselves too small for incorporation, this couldn't be further from the truth. Here are three methods to consider when incorporating your business:
For the small business owner, there's typically little separation between business and personal. You bring your work home (or you may even work from home). You've probably invested your own money in the business, or skipped a pay check or two to keep the business going.
Starting a business involves a great deal of filling out and filing the appropriate paperwork to get up and running. A lot of it is fun to work on—picking a business name, logo, color scheme and location—but there's also plenty of legal work that new small business owners need to think about.
A leader has so many special qualities that it's inspirational when you work with them. They possess an invisible aura that radiates confidence and challenges everyone around them to achieve greater heights than they would have ever dared to try before.
The last thing a small business owner needs is problems with a government agency. There are three kinds of rules and regulations that businesses must follow.
Something big has been happening in the world of business, and that something goes by the name of the benefit corporation. Recently, Delaware became the 19th state to enact benefit corporation legislation.
I've built five companies in my startup career, four of which I started with close friends. It's quite common to build a company with a close friend: you get together, think of a cool idea, and decide to get started. Why not, right?
Ask why you need a formal business structure when you start a business and the answers are usually straightforward. For some, it's a need to separate personal assets from the business; for others, it's a desire to lower overall taxes or be viewed as a more credible business.
A name is the cornerstone of your business—it sets the stage for your branding and identity. Just imagine if Target still went by its original name: The Dayton Dry Goods Company. If you're about to start a business (or maybe are thinking about rebranding an existing business), you've probably been brainstorming for the perfect name.
It's common to think, "I'll wait until we grow some before I spend the money to form a corporation or LLC." But delay in selecting the right legal entity when starting a small business can wind up costing a lot of money in higher taxes, as well as creating a potential legal disaster for the entrepreneur's family.