Small Business Setup

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structure of the company. The three legal structures are Sole-proprietorship, Partnership and a Corporation. Each one of these legal structures has its advantages and disadvantages. The different aspects that each legal structure differs are: management control, capital, liability, income taxes, business continuity, and government regulations. The understanding of these different issues is crucial to the decision of which structure is the best one for the entrepreneurs business. Be sure to consult an attorney before making this decision.
In a sole-proprietorship, the owner retains total control of all the decisions that need to be made. The ability to raise capital is limited by the financial resources and the credit worthiness of the individual owner. The owner has the ultimate liability for all the actions and debts of the business. A sole-proprietorship is not a separate taxable entity. The individual owner reports business revenue, expenses and net income (or loss) on ...

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and few records are required. They should have a partnership agreement, which is available at most office supply stores or at the local County Department of Economic Development office. Completed form with all signatures notarized must be filed with the County Clerk’s Office. It is advisable to consult a lawyer about a partnership agreement before filing the certificate.
With a corporation, the day-to-day control rests with the hired management team. Ultimately control is vested with the Board of Directors who are influenced through the voting process by the shareholders. The ability to raise capital is potentially greatly expanded because additional shares of stock may be ...

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