How To Choose The Best Legal Structure For Your Business

Published on: 15 April 2022 Last Updated on: 05 May 2022

Starting a business can be exciting, scary, and – let’s be honest – confusing!

You don’t need an MBA or any other business degree to start a successful business. But, there are other important things that you need to make right from the beginning.

While there are many things that need to be done correctly from the start of the business, there is one thing where you cannot make a mistake Choosing The right business structure.

Your business structure is important in many ways. It decides how your business will showcase in front of others, what power you will have over your business, and most importantly, what type of taxation it will fall under.

Seeing how the current entrepreneurs are so hung up on sole proprietorship that they do not see the benefits of other business structures.

Today, we have come to take you on a journey and make you see the different business structures and what each offers to a business.

What Is A Legal Structure Of A Business?

Every new business requires the formation of a business entity that can be considered its identity in the market. This is where the concept of a legal structure comes in.

A legal structure, also known as a business ownership structure, determines the flow of power within the business, the type of income tax you need to file, and highlights the risk to which your business is exposed.

The most common legal business structures are as follows:

Sole Proprietorships.
Partnership.
Corporation.
Cooperative.
Limited Liability Company (LLC).

Types Of Business Structure

While there are many legal business structures, we have picked the most used currency in the world. This Legal Structure covers almost every aspect of legal business structure.

1. Sole Proprietorships

This is the simplest form of legal business structure. In this type of business structure, one individual is solely responsible for the business profits, debts, and liabilities.

This business structure works great for small to medium-scale businesses. This entity does not offer separation or protection of any personal and professional assets. While this is great for small businesses, it might be difficult to scale up.

2. Partnership

As the name suggests, this type of business structure is owned by two or more individuals. The legal partnership structure can be further divided into two entities: General Partnership and Limited Partnership.

A general partnership is where all the shares are equally divided among all the partners.
In a limited partnership, one individual has control over all the business operations. While others are just contributors and shareholders for the profit.

3. Corporation

When a business is considered a corporation, it becomes a separate entity from its owner by law. It is considered a separate entity that enjoys legal rights just like any other person.

For instance:

It can sue others.
It can be used.
Buy and sell a property.
It even has the right to sell the right of its ownership.

4. Limited Liability Company (LLC)

A Limited Liability is a hybrid structure that allows owners, partners, and shareholders to limit their liability while enjoying the tax and flexibility of a partnership business model.

Under the umbrella of the LLC, members of the business are shielded from any personal liability related to the business as long as they have a written LLC Operating agreement contract.

However, to do that, the business needs to have the best business bank accounts with all the necessary features.

5. Cooperative

A cooperative business legal structure follows the concept of serving the same people who are working for the business. All the members are responsible for making business decisions, and whatever the profit business samples, it is shared among the members.

A cooperative business structure offers the following advantages.

Low taxes.
Increased funding.
Better discounts and services.

Factors To Weigh Before Choosing A legal Business Structure

While an individual can choose any business structure they like, there are a few considerations you need to look into.

1. Complex Procedure

Businesses with fewer people don’t need complex procedures to rule their business operations. Instead, they can just follow a simple business format.

However, if your business has many employees and offers different types of services, you must select a business structure that can support all your business requirements.

The best way to understand what kind of legal business structure you need is essential that you understand the goals and a business structure that help you achieve the least complexity.

2. Continuity Of Existence

You are not starting a business with a lifespan of only a decade. That means, while you are planning for your business, you must plan for its continuity. Hence, it is important that you see how a business is concluding.

If you are thinking of securing your business for future financial security, you must also look into the right business structure to support your needs.

3. Control

Business is all about control. If you cannot control how your business is operated, you will never be able to calculate the ROI at the end of the day. Hence, it is essential to decide how much control each individual requires to operate the business.

For instance, if someone wants to have more control over their business, sole proprietorship might be a more suitable business structure.

4. Liability

When running a business, you need to ensure that your personal liabilities are not tied down with your business. In that case, what will happen is that your personal liabilities will be used to cope with business losses.

Hence, to separate your business from your personal liabilities, choose a legal business structure that protects your personal assets.

Conclusion

Choosing a business structure is dependent on what you want to achieve from your business. Depending on what you want from your business, you can go with any legal business structure.

While you are free to decide for yourself which business structure you want to go with, it is a good idea that you take help from a business lawyer.

A business lawyer can help you understand the differences and benefits more detailedly. They will even help you with all the paperwork needed to establish your business as a legal entity.

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Arnab

Arnab is a professional blogger, having an enormous interest in writing blogs and other jones of calligraphies. In terms of his professional commitments, He carries out sharing sentient blogs.

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Things To Keep In Mind When Looking For The Best Facility Maintenance

The importance of a well-managed infrastructure in the success of a business cannot be underestimated. A properly maintained commercial property ensures efficient delivery of services, a safe and healthy working environment, optimum worker productivity, and customer satisfaction. It adds value to an organization, so it’s important to keep it in great shape. Unfortunately, facility maintenance, upkeep, and repair can take up a massive chunk of a business’ operational expenses. The good news is that service contractors are specializing in commercial property maintenance without straining your annual budget. Outsourcing this business aspect is a cost-effective alternative that comes with several other benefits. Many businesses are now adopting this business structure. In fact, the global facility management market was estimated to reach $1.314 trillion in 2018. With the help of reliable building maintenance services, costs are controlled, resources are maximized, standard services are delivered, and compliance with health and building codes is ascertained. How to choose the right facility maintenance provider? Facilities maintenance is an important part of your organization’s day-to-day operations. Once you outsource it with a third-party provider, the facilities management services become an integral part of your business. Their quality of service, whether it is good or bad, will reflect on your business. Working with the inexperienced or ill-equipped provider can lead to a horrible partnership that can adversely affect customer satisfaction, business operations, and revenue potentials. This makes it vital for businesses to choose only the best. Facility maintenance specialists at CSG share with us some things to keep in mind before zeroing in on a provider for your business. Reference: Any company can make an impressive marketing material. However, make sure to verify the claims of a potential provider. Ask for references that can vouch for the quality of services they offer. Training and experience: Employees of the facility maintenance provider become a de facto member of your company. They play an essential role in your business’ daily operations. As such, you want a provider with skilled, trained, and qualified personnel so that your clients get the best service experience. Furthermore, this should also ensure that they can execute their duties properly. Ask about development and training programs for service employees. Look for a company that considers continuous this a priority. Flexibility: Choose a commercial property maintenance contractor with a wide range of capabilities. A reliable facility maintenance services must be versatile and be able to respond to the ever-changing needs of your business quickly. This will ensure consistency in the delivery of services, efficient work processes, and reduced costs associated with hiring a different contractor. If your business is expanding, consider working with a company that offers scalable services or customizable plans and programs. Supplies and equipment: An excellent facility maintenance provider should be well-equipped with adequate and appropriate supplies and equipment. Check their inventory to validate their claims. This should help you assess their capability to meet your building maintenance needs. Verify the quality of the equipment and products they utilize. Management and leadership: This is a crucial aspect of any organization as it can have a significant impact on how tasks and responsibilities are accomplished. Poor leadership can lead to failed delivery of services. You want to know who will be managing the account. Explore their existing organizational culture and see how policies are utilized to achieve goals. Transition process: With proper risk management and transition plan, a change in facility maintenance provider could lead to disruption of services. As such, you want to check how the provider can guarantee a smooth handover and avoid any interruptions that could affect business operations. Insurance: To avoid any liabilities while their personnel is working on your premises, make sure to check their current insurance policies. Availability: Inquire about any blackout times in a provider’s schedule. Also, check about how they deal with sudden requests for additional personnel or new tasks. Certifications: Certifications such as CIMS Green Building, Occupational Safety and Health Administration (OSHA) compliant, and Cleaning Industry Management Standard (CMS) ensure competence and compliance of a prospective contractor. Inquire about the certifications that the provider currently hold. Read Also: How To Protect Your Business From Downtime

10 Unavoidable Reasons for Businesses to Relocate

Setting up your physical shop or office is not an easy job. You should put away huge time and cash and put a lot of difficult work to guarantee that you have an amazing retail facade or working environment that mirrors your image and will pull in your objective clients or customers. Relocating business along with packing and moving can be the toughest jobs of your life, but movers in Phoenix can help you get rid of this task. With all the exertion and cash you put resources into opening your store or office, relocating your business will absolutely be the farthest thing in your brain. Notwithstanding, regardless of whether your business is new or effectively settled, there will come a time, when moving your shop or working environment will be the best choice you can actually make. If your organization is planning to move to another state or country, here are a few tips to read that could possibly be one of the main reasons for relocation: # 1. To secure more space. The No. 1 explanation an organization will move to another office is on the grounds that their present office no longer has enough space for them to do the things they need to do. One of two components becomes an integral factor: either the encompassing property needs more open space to oblige an actual extension of the structure, or the executives have established that such an office development on the current site would not be financially savvy. # 2. To bring down working expenses. While the requirement for more space might be the No. 1 explanation, directly behind the reality high working expenses have made an organization or plant uncompetitive. In some cases it's the expense of work: normal compensations, benefits, laborers comp and joblessness protection costs, and so forth Or then again it very well may be the difficult natural guidelines or high assessments. # 3. To modernize hardware and offices Now and again an organization's current office, its gear, or both, have become so outdated that the organization is put at an inconceivable hindrance contrasted with its rivals. # 4. To draw nearer to an enormous section of their market Significant distances to advertise mean two things: time and cash. In the event that a huge segment of an organization's market is in a specific district, that organization might have the option to set aside a ton of cash in transportation costs — and furthermore lessen their item conveyance times — by setting up an activity in that locale. # 5. To combine into fewer offices. Some of the time an organization simply has more assembling offices than it needs. # 6. To be nearer to specific providers or common assets. Similar market influences that apply to an organization's client base additionally apply to its providers. Significant distances mean higher transportation expenses and longer reaction times. # 7. To get to a superior or bigger work pool. Nowadays, work is the topmost concern for growing or migrating organizations, when they take a look at the areas. Here and there, an organization or office develops to where the neighborhood or local area, at this point don't supply a working power in adequate numbers and quality. # 8. To kill explicit work-related circumstances. Here and there an organization or office is having a terrible involvement in associations — ongoing strikes, expensive advantage bundles, or whatever — and the solitary arrangement is to move as distant as they can. # 9. To be nearer to comparable sort organizations (grouping). Numerous organizations like to bunch around different organizations inside a similar industry. Silicon Valley and Detroit are exemplary models, yet there are a lot of different models everywhere in the country. # 10. To improve personal satisfaction. A few organizations simply need to improve their personal satisfaction. This might be the individual decision of the proprietor. Or it could be with the goal that the organization can more likely draw kinds of workers. Like engineers, researchers, visual specialists, or whatever, by being in “high caliber of life” area. Before you start to move out, here are a few tech details you should know about relocating a business. We all vibe that the spot we live in has the best personal satisfaction on the planet. The significant thing is the way others see personal satisfaction in a specific area. If an organization enlists broadly, or globally, for high-ability representatives, at that point being in an area by and large seen to be “cool” is an unequivocal resource. How to Make this Relocation Fast (...and Hassle Free) Moving your business can seem like the most difficult task. From packing up everything in your current office to getting settled into a new space, there are numerous obstacles along the way. However, moving your business doesn’t have to be overwhelming or stressful. With some careful planning and consideration, you can make the transition much easier for yourself and your employees. A Checklist Is a Must! Planning. Write down a checklist or to-do list of everything that must be done before, during, and after the move. This includes things like letting employees and customers know, as well as calling the moving companies. Having a plan will keep you organized and help stop anything from falling through the cracks at the last minute. Try Hiring Professionals Don’t try to do it all yourself. Hiring professional movers with experience in business relocations can save you time and stress. They know how to handle office equipment, furniture, and even sensitive documents. Plus, they can help you avoid common moving pitfalls. Communicate with Your Team Keep your employees in the loop- Let them know when/where you are moving, how this will affect their work, and what, if anything, they need to do. Good communication will help you identify potential problems early and ensure that everyone is prepared for re-opening and is on the same page. This is also the time to banish any gossip or rumors that can occur at a time of uncertainty. Declutter Before You Pack Get rid of the stuff you don’t need. Take a full inventory of your office and decide what to keep, donate, or throw away. This is an opportunity to not only reduce clutter but also start fresh in your new location. Label Everything Labeling will be your best friend! Labeling is important for being organized on your move. Use post-its or markers to write down the contents of each box and where it will go at the new office. You can unpack much faster and nothing is left behind. Plan for Downtime No matter how much time you plan, you will still have some downtime moving. Make sure your clients know the move date, and if you need to, set up a temporary workspace. You don’t want your entire business to be down. Visit your new office space before your official move-in date. Make sure everything is in working order. This includes your internet connection, phone lines, and any other systems you work off. The sooner you find and report any issues, the less of a headache it will be for you down the line. Why Not Enjoy the Move? Throw yourself a little party after signing the lease! Lastly, don’t forget to celebrate. This is a big deal, and your team deserves recognition for its efforts. Throw an office party or lunch to welcome everyone to the new space. It’ll send some good energy around the office as you open this new chapter. Follow these tips, and your business relocation will be as quick, organized, and painless as possible. Read Also: Mistakes that Expats Make when they Move Overseas Plan Moving Houses Ahead: 7 Essential Tips 7 Helpful Tips During an Emergency Moving Process Moving Companies and How they Determine Cost Finding The Right Moving Company

Courses For Entrepreneurs Are Worth It – Here’s Why

Being a self-proclaimed entrepreneur is hard. At first, you think it’s okay as long as you have a strong drive for success and an indestructible morale. However, as time goes by, you realize that there are simply things that won’t go as you expect no matter how much you will them too. All too often, a determination that borderlines stubbornness is not exactly the trick to getting what you want. More times than not, what you need is to do things the old-fashioned way – putting in lots of time and effort to better yourself in the field of entrepreneurship. Do you know how people always say “learning never stops”? Well, it’s true. It never does. Most of us seem to have this misconception about finishing college. We all tend to think that the end of a course is the end of all scholarly hardships. But let me tell you something: That is hardly the case – ever. Learning doesn’t stop at any one point. It doesn’t stop when you graduate from primary, secondary, or tertiary levels. Heck, it doesn’t even stop after you’ve acquired your Ph.D. You see, the world’s information is vast and ever-evolving. This is why you’ll never reach the end of it. The only thing you can do is to keep learning and adapt to the changing times. Of course, if we try to take in information all at once, our minds will probably explode. There’s only so much we can take after all. This is why instead of trying to digest everything all at once; I suggest that you practice “selective learning.” How Can You Improve Your Entrepreneurial Skills? Are you familiar with the expression Jack of all trades but master of none? This is exactly the kind of person you wouldn’t want to be. A jack of all trades is a typical person that is capable of learning and doing almost everything he tries a hand at – but only to a certain extent. It means that he is knowledgeable about many things but he is never considered an expert on any of them. It’s like a plumber who can fix a sink but can’t fix a toilet; a carpenter who can fix a chair but not a table. Or, you could be an entrepreneur who can sell silver but not gold. Does this make any sense? A jack of all trades may be capable of a lot of things which is great but it is also because he knows far too many things that he can’t just focus on mastering one (read more). He is constantly in a state of confusion. And in the real world, being a “Jack” won’t cut it. Nobody is going to pay you for being an “almost” expert at something. It’s either you’re an expert or you’re not. The same thing goes with entrepreneurship. Why Take Online Courses? If you are hoping to get anywhere with your business career, you have got to stop being a Jack. If you want to sell, you have got to raise the bar for yourself. Dedicate most of your time and energy in trying to become the best entrepreneur that you can be. You see, legends don’t just happen – they are made. And you too can become a legend of your own in the field of business if you work hard enough. The very first thing that you should look into is taking online courses for entrepreneurs. Marketing, PR, Social Media Advertising, Public Speaking, Product Pitching, SEO, and Digital Marketing are just a few of the many supplementary classes you can attend to further enhance your entrepreneurial skills and abilities. The more you learn about entrepreneurship and the more you immerse yourself into the reality of becoming a successful businessman, the closer you are to making it all happen. You know what they say, if you want it, claim it. Yes, claim it as if it was always yours from the very start. Again, heed my advice: If you want to be an entrepreneur not just in name but in skill as well, take online courses. It’s your best bet to becoming better at what you do! Read Also: Quit The Rat Race: 5 Tips For Becoming An Online Entrepreneur Five Traits Of Successful Entrepreneurs You Should Develop 5 Key Leadership Skills For Entrepreneurs

How To Choose The Best Legal Structure For Your Business

What Is A Legal Structure Of A Business?