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Business Start
source by: businesstown.com
STEP 4 Getting started You've got the plan, the money and the enthusiasm; you're ready, right? Not yet, as with everything you need to take the legal issues into consideration. First you should choose a legal structure: Sole Proprietorship, Partnership, or Corporation.
Your financing decisions will have an effect on what legal structure you choose. Now you can file with the state to incorporate and obtain a federal Identification number.
Sole Proprietorship Overview This form of business is the easiest to start because you need obtain only whatever licenses that are required in order to begin business operation. The sole proprietorship gives you absolute control over your business, more so than other business structures such as partnerships or corporations. Partnership Overview The Uniform Partnership Act defines a partnership as “an association of two or more persons to carry on as co-owners of a business for profit.” Although not required by law, you may have to submit written Articles of Partnership. This would apply, for instance, if you wanted to open a company bank account. Corporations Overview Since the corporation is considered a distinct legal entity with no ties to the individuals who own it as a legal structure, it is a very attractive option for small business owners. Incorporating is, however, a complicated undertaking. It gives you the opportunity to present your firm to the public as a bigger company than it actually is. It also gives you a better shot at obtaining long-term financing.
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