Choosing a Business Structure

Posted on December 7, 2007 
Filed Under Business Basics

Diane asks:

“I would like to know if I should set my business up as a LLC (Limited Liability Company)??”

The answer depends on whether or not the state in which you work recognizes the limited liability structure of business ownership.

Not all states offer this type of structure. I’m in New Jersey, which did not allow LLCs until several years ago.

Each state’s Web site offers a “start a business” section which provides you with basic information on how to form a business.

For example, Texas offers a four-step tutorial to start a business in that state. If that’s where you live, that’s what you’ll consult.  Otherwise, use a search engine to find your state’s official Web site and look for the “start a business” link.

You’ll also need to speak with a small business accountant in your state. I know – this is the hard part - but finding and investing in an accountant is not a difficult task.

Do you know anyone in your state who’s already in business that can recommend an accountant to consult for 30 minutes? It really is worth the cost, which in many cases is around $100 to ask lots of questions in that 30-minute timeframe. Your passion for business is worth that.

Learn your options from experienced professionals who will give you smart advice. Then you can move forward in business knowing that your foundation is rock solid.

Gift Basket Designers: Did you start as a sole proprietor and then change to an LLC? Or perhaps you’re thinking about going that route? Share your comments here by clicking the “Leave a Comment” link above.

[tags]gift basket, gift baskets, business structure, setting up a limited liability company LLC, gift basket business[/tags]

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