Forming a New Business?
Forming a new business? Every New Year everyone sets new goals and expectations, sometimes those goals are personal, sometimes professional. If one of your goals is to start that new business or venture, then there are several questions you need to ask. What type of entity is this new venture going to be, a limited liability company, a corporation or are you going to risk all and operate under a dba. The later is probably not the choice you should make. Operating any business as a dba (or doing business as) does not protect your personal assets, including your family home, personal bank accounts and other personal assets from potential business creditors. The easiest way to protect your personal assets from business liabilities is to form an entity. In fact the more entities formed relating to the business the more you are personally protected. For example if you decide open a residential contracting company (first make sure you have the necessary licensing), you would definitely want to form either an LLC or an Inc. for the company itself. Also if the company were to own a fleet of vehicles, it would be a good idea to form a separate entity to own the vehicles, and that company lease those vehicles to the main construction company.
The reality is that starting a small business is the backbone of our economy, but never do it haphazardly, you should always consult with a team of professionals, ranging from attorneys, CPAs and financial planners.