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How to determine the appropriate business organization

On Behalf of | Jun 15, 2021 | Business Organizations |

There are many people in Tampa who want to start a business. They may have a good idea or have gained enough experience in a certain field to go out on their own. The focus early on is developing a business strategy and maybe most importantly getting clients or customers to buy from the company. However, there is another aspect of starting a business that is just as important, which is choosing the appropriate legal business structure for the business.

It is important that the organizers and owners of the company protect themselves from personal liability for aspects related to the business. It also important so it is clear how the business will be ran, who will make decisions, how various disputes will be handled and other aspects of the business. There are different business structures that businesses can choose. Those include, but not limited to c-corporations, s-corporations, limited liability companies (LLC), partnerships and others.

Factors to consider when choosing business structure

Choosing the right business structure is important and there are a number of factors that they should consider when choosing the right structure. Those factors, include but are not limited to:

  • The cost and ease of setting up the business. Partnerships are easier and cheaper whereas corporations and LLCs are more complicated and costly.
  • Whether information about the company will be public or not.
  • Whether the owners will be personally liable for debts or obligations of the company.
  • How much control the owners have over the operation of the company.
  • How the company and the owners will be taxed.
  • Ease of selling or expansion of the company

The type of business people start in Tampa will govern the decisions that people make when choosing a business structure. The size of the company, the type of service or product they provide and other factors need to be considered as well. Starting a business can be complicated and it needs to be done correctly though. Experienced attorneys understand the documentation needed to start the various types of business organizations and may be able to help guide one through the process.