When creating a new company, registering your firm is one of the most important steps that must be met. There is paperwork that has to be filled out and depending on the kind of business you plan to run, there may be permissions and licenses that need to be secured as well.
When beginning a new venture, one of the first things you will need to think about is the type of legal business structure that will work best for your particular form of company. Because your choices will ultimately have an effect on your responsibilities, taxes levels, succession, ownership issues, the disposal of your company in the event that you ever decide to sell it, and other legal matters, you will need to do the appropriate study before making this option.
Types of Business Structures
For example, some popular types of business structures include the following:
Sole Trader or Sole Proprietorship:
a type of business structure in which a single person is responsible for all of the trade obligations of the company.
Partnership:
This type of business arrangement allows two or more individuals to legally share responsibilities, liabilities, risks, profits, and losses.
Corporation:
a regulated, legal entity that is distinct from the officials and stockholders of the corporation. Companies typically fall into one of two categories: public or proprietary.
Trust:
an entity in which the management of the firm is handed over to a third party who is responsible for overseeing all legal matters. This party is tasked with the responsibility of successfully running that business for the benefit of the other members of the trust.
When you begin the process of registering your company, you need to make sure that you have carefully weighed all of the potential benefits and drawbacks associated with the various business structures available to you and selected the one that will serve your industry the best. Ask yourself,
- What kind of a company do you envision yourself running?
- Are you capable of shouldering all of the responsibilities on your own, or do you think it would be more beneficial to divide the responsibilities with a partner?
- What amount of income do you believe to be acceptable, and how much of a profit margin do you expect to make?
- How will your profits affect your personal income and the amount of tax you have to pay?
- What are the most effective steps you can take to protect both your business and yourself from potential legal repercussions?
- Is it possible to hold you personally responsible for mistakes made in the business? Would you be willing to take on such a large amount of responsibility?
- How valuable do you anticipate your company’s assets to be?
- To what extent are you familiar with business practices such as the taxation of capital gains, the registration of shareholders, and others?
Selecting Business Name
Once you have decided on a structure, you can look for an appropriate business name. Choosing a name may seem straightforward, but keep in mind that your choice must be legally recognized in your state or territory. No two businesses can have the same name; if your proposal is already officially registered, you will need to choose another name or change your initial proposal.
Business Registration
For beginners, registering a business can be a very difficult task, in addition to renting a building, hiring staff, developing business policies, dealing with legal issues, managing funds, and other necessary tasks; they should seek out a professional business service agency to assist them in their efforts.
Experienced business service providers are trained professionals in New York who deal with the legal aspects of registering a business, employment law and basic rules and regulations on a daily basis. They know exactly what to do and where to file all the necessary documents. By entrusting the management of your business to these qualified advisors, you will not only save time but will also ensure that you do not have to pay fines for neglecting important rules or missing essential authorizations. They will take some of the work off your hands and free up valuable time for you to focus on your other business obligations.