[MINI-COURSE] Choosing a Business Entity
So you’re starting a business!
I can remember how I felt when I filed my first set of articles of incorporation in 2011 for my very first company ‘Raysquared, Inc.” and the rush I got when I finally started something of my own!
But then I soon came down out of the clouds…
My trusted mentor reminded me that while business can bring great rewards for me; as the owner of an enterprise I am also assuming all of the risk!
I don’t want to scare you but as your virtual business coach I feel I need to tell you this. At the end of the day, your business is the result of your hard work and you want to protect it. So in this mini course, I want to show you the best way to protect the business that you’re working so hard to build. I’ll weigh out the pros and cons of all the options you have to keep your business safe and we’ll tackle a plan to keep your business in right standing with ‘Uncle Sam’ and more!
Check out the video teaching below to get started!
Here’s a quick recap:
Business entities are the basic structure and foundation for your business.
Some types of business entities will protect your personal assets. So what that means is if you own a house, or you have personal things that you've acquired, you don't want them to be the things that go into the business. What's in the business is the businesses and your personal things can stay your personal things.
Each form of business organization has its advantages and disadvantages.
This mini course only covers entities here in the United States. Here are the main types of business entities for your business here:
1. The Sole Proprietorship
This is the simplest form of all the business entities. If you choose this structure then legally speaking you and the business are same.
2. The Partnership
This form of structure occurs when two or more people act as co-owners of a for-profit business.
3. The Corporation
If cutting down on liability and risk exposure is important to you, then you may want to consider organizing your business as a corporation or an LLC. One of the major advantages of this type of entity is that it protects your personal assets because you and the business are separate.
4. B Corporation or a Benefit Corporation
A benefit corporation is a type of for-profit corporate entity that includes positive impact on society, workers, the community and the environment in addition to profit as its legally defined goals. Benefit corporations differ from traditional C corporations in purpose, accountability, and transparency, but not in taxation. Not every state within the US recognizes these types of entities and at the time of this recording there were two international countries that began recognizing it.
Each has its pros and cons and you should weigh each one against your specific circumstances, goals and business needs. Be sure to watch the video in this post if you haven’t already done so. I provide very detailed info on how to choose which entity may be best for your business.
Here’s the link to my mini course on “Keeping Good Financial Records” I mentioned in the video —> Listen to the mini course HERE.
Now, I want to extend an invitation to you to join the Accelerate Circle™. This is my VIP list where I share business strategies + inspiration to help you grow in faith, life, love & business. As an added bonus, you’ll receive a FREE copy of my Quarterly Business Goals Planning Guide for signing up. Join HERE.
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What was your favorite takeaway from this mini-course?
Share your thoughts with me in the comment section below. Have questions or want to share advice you’ve learned on your business building journey? Drop ‘em below in the comments too!