Which Business Structure for Your Gift Basket Business?

Posted on September 18, 2008
Filed Under Laws and Contracts

Learn about business structures before choosing one for your gift basket business
Flora asks:

“Is it necessary to hire a lawyer with help setting up an LLC? I’ve heard that you can save money by setting it up yourself.”

An expert (I don’t remember the person’s expertise) who recently responded to a newspaper Q&A discouraged against incorporating a business without legal assistance.

I can understand that, but in my opinion, registering a company as an LLC (limited liability company) is not as complicated, so depending on your ability and willingness to review documents with meticulous care, I believe it’s possible to set up an LLC without legal assistance.

I do, however, suggest that you review the pros and cons of sole proprietorship, LLC, and incorporation to make sure you’ll be satisfied with your business structure choice. You’ll find a handy chart comparing each structure on the Nolo.com site.

Some states may not recognize LLC formation, and other states may make the process so complicated that hiring a lawyer to complete the job is preferred.

For example, New Jersey once did not recognize LLCs, but now they do. I was able to apply for and complete the paperwork online and pay a nominal, one-time fee, all without legal assistance.

California, as another example, provides business structure information on this page, making it easy for business owners to determine each step.

The book, How to Start a Home-Based Gift Basket Business, also introduces you to business structure options. Even if it’s not as detailed as updated state and country sites, it still provides a blueprint for one to consider before registration.

After you review the LLC formation details, you’ll know if it’s right to proceed without a lawyer or if one’s help is mandatory.