So, you’ve successfully gotten you home business up and running, and you are thinking it is time to take the next step.
Incorporating a business is the process of turning your business into a company, formally recognized. This means your business is now it’s own legal entity, separate from yourself and anyone else involved in its creation.
Making the decision to take this next step is the easy part. Deciding which route is best for you and your business is a little bit trickier.
The best thing to do when you reach this stage in your business is to get help from a lawyer, specifically one who specializes in small business corporate law. They will be able to educate and advise you on what they think is the best path for your business.
How Will The Lawyer Help Me?
First things first, the lawyer will help you determine what kind of business you already have, and whether or not incorporating is the best thing for you to do. The lawyer will look at whether you have a sole proprietorship, partnership, or non-profit, and can help you understand the pros and cons of where you already are, and the pros and cons that may come with becoming a corporation.
Sole Proprietorship
A sole proprietorship is an unincorporated business owned by only one individual.
Corporation
A corporation is a company (typically larger in size) authorized to act as a single entity and recognized as such in law.
Partnership
A partnership is a business in which two or more individuals pool money, skills, and resources, and share their profit and loss in accordance with the partnership agreement.
Non-Profit
Non profit organizations are dedicated to furthering and advocating for a cause, and they use their surplus revenue to achieve that objective, rather than distributing to shareholders, leaders, or members.
Lawyers can also help ensure that you are doing things properly, and that your business should have no troubles with the law or with the government.
Voila!
You may be an expert in whatever field your business is in, but running a business does not make you an expert in the legal aspects associated with such. When it comes to making big decisions such as incorporating, it is important to get advice from the professionals (the lawyers) to ensure you don’t find yourself in any unwanted legal situations down the road.
Not only can they help you avoid such problems, but they can also advice you on what would best suit the needs of both you and your business.
