Now more than ever is a great time to open up a small business. The economy is slowly recovering and there is much potential for growth for people who take the opportunity. I know you, just like many others, have had this burning idea. Your idea seems to have limitless potential and yet you are afraid to execute it with gusto. You think that you can bide your time until a more opportune moment when you have more money and resources to put into the growth of a business.
Although the move is considerably more conservative, you may be missing out on the best time to open up a small business. Many lenders are offering great loan packages for people with a startup idea and a solid business plan. Often times, these loan packages have very reasonable rates that allow borrowers to worry about making their business plan happen rather than stress about the skyrocketing interests that’s being added to their principal.
So, how do you open up a small business and what kind of business entity should it be? There are many types of business entities out there. You can create a limited liability company, sole proprietorship, cooperative, partnership etc. There are so many different types of business models that you can choose from; the right one for you depends on the kind of business you want to create and how you wish to operate it.
It is very important to understand the types of business entities and choose the proper kind that will fit the needs of your company.
So, how can you be sure, you’ve chosen the right model? I would recommend seeking counsel from an attorney to review your company docs and the business plan. An attorney can give you great advice on opening up a business entity as well as preparing the documents you will need to properly register your company. Remember, if your company isn’t established the right way, you could be subject to serious consequences or be unable to sell and receive profits from the company because you aren’t authorized.
Michael C. Blickensderfer is the senior attorney at Blick Law Firm. As an attorney and owner of both Blick Law Firm and Infinity Abstract & Title, he is very aware of company models and how to properly register a company. He can provide feedback and counsel you on the type of model you might prefer as well as giving you the positives and drawbacks of each.