Deciding on the Right Company Type

According to the U.S. Census Bureau, more than 70% of companies in the US are set up as sole proprietorships. A sole proprietorship is usually a business which is owned by one individual and does not have any distinction among who owns the company along with the corporation.

Sole proprietorships really have benefits. The greatest advantage is that there are no formal measures to setup the corporation. When a person begins conducting business, the business is a sole proprietorship except when another business has been created. Other advantages of a sole proprietorship include lower cost of economic, less regulations, and even more control of the organization. With all these advantages, the query then becomes: Should I set up my company as a sole proprietorship? The response is generally no.

The answer is no for several reasons. Initially, although a sole proprietorship has certain advantages, it also is a significant drawback. In a sole proprietorship, the organization owner has unlimited liability -that is, the company owner shall be personally responsible for all organization liabilities.

There are many forms of organization entities, and it may be a challenge to discover the the one which best suits your corporation needs. Every business and company owner’s circumstance is unique. If your company is currently setup as a sole proprietorship, you could meet up with an expert Mesa Arizona business lawyer, like the ones at Gunderson, Denton & Peterson, PC, who could talk with you and assist you to create a start up business entity that can provide you and your organization an even greater opportunity for success.