08 Sep, 2017

Starting A Company

If you dream of making a lot of money in your life you should think of starting a company. It may seem hard and difficult incorporating a company but it is very simple to do so provided you have information about what is required and the processes that should be undertaken. The greatest advantage of starting a company is that it is an entity that is considered a legal person. The company is different entity from its owners; your liabilities are not those of the company. The company can sue and be sued in its own name. The laws for starting a company vary from state to state in the United States and so it is good to consult solicitor to guide you in the process of incorporation. Depending on the business or businesses that the company will be involved in you may be required to obtain one or several licenses. The professional you consult should also advice you on the best company structure that you should set up. The advantages of company far much outweigh those of sole proprietorship. In the case of sole proprietorship, there is no distinction between the business and its owner. The assets of the owner can be sold to pay the debts and liabilities of the business. The assets of the business can also be sold to pay the debts of the owner. If the company is to be formed and owned by you and another person then you should think of forming a corporation, partnership or limited liability company (LLC). The partnership is not very good because the partners can be personally held liable for the debts and liabilities of the partnership. If you want protection from liability you only have two choices left and that is corporation or Limited Liability Company. The only issue that comes as regards starting a company in the form of limited labiality company or corporation is that the business will be subject to corporate tax. In essence the tax liability for company is higher but the owner is protected against certain liabilities of the company. It is important to note that starting a company is rigid and complex than setting up sole proprietorship. You can establish a sole proprietorship and then transform it in to corporation or Limited Liability Company after six months. You can also get protection for business liabilities through buying the commercial liability insurance. The choice of between Limited Liability Company and corporation depends on the nature of business you want to set up. Any person can form LLC except accountants, architects, medical professionals and the banking and insurance professionals. The fore named professionals are not allowed to form Limited Liability Company.