How Do You Create A Business Entity?
Entrepreneurs starting a new venture should always organize a business as its own legal entity. Two main types of legal entities are LLCs and corporations. Any business not organized as its own legal entity and owned by one individual is a sole proprietorship. In a sole proprietorship the owner is responsible for all of the actions and liabilities of the business. Entities such as LLCs and corporations protect business owners by creating a corporate veil between the business and the owner. A partnership is a legal business entity in which the owners have joint liability and authority. Choose your form of business entity. Most businesses today are organized as LLCs or corporations. The choice between the two is largely a matter for discussion with your CPA and attorney, because the technical differences will impact your tax strategies. In general, corporations are a more formal form of legal entity compared with LLCs–a simpler, more flexible business entity. Pick a name for your busine
