Setting up your own Idaho Falls small business can be a stressful task, especially if you’re not really sure about the different types of businesses and which one would be the perfect fit for your company. With that in mind, we’re going to take a look at some of the most common types of businesses, as well as what role a lawyer would play in setting them up.
Idaho Falls Sole Proprietorship
A sole proprietorship is the easiest to define because there is no legal difference between the business and its owner. Once you’ve registered your business as a sole proprietorship, you don’t need to worry about any additional filings or legal formalities. While this is great for new business owners, it also comes with additional risks. Since there is no separation between the business and its owner, their assets are essentially tied together. This means that any lawsuits against the business are, for all intents and purposes, against the owner as well. You may not need a lawyer to start a sole proprietorship, but you’ll certainly want one to protect your assets if your business faces a lawsuit.
While there are a number of different partnerships that divide the profits and liability of the owners, the general idea of a partnership is for two or more people to share all of the risks in exchange for a share in all of the rewards. Due to the potential complexity of a business partnership, it is highly recommended that you seek out a lawyer’s services before engaging in any deal. A legal contract should always serve as the basis for a business partnership, as it’s the only way to ensure that each partner upholds their promises.
Idaho Falls Corporations
Corporations are essentially businesses that exist as separate legal entities from their owners, who are referred to as shareholders. Since corporations are legally distinct from their owners, there is a reduced liability in starting a new corporation. If you’re interested in setting up an Idaho Falls small business and want to reduce your own personal risk as much as possible, then a corporation may be worth looking into. Of course, the extra paperwork involved in establishing a corporation means that you’ll also want to make sure a capable lawyer oversees everything.
Idaho Falls Limited Liability Corporations (LLC)
A limited liability corporation, otherwise known as an LLC, is a hybrid business structure that provides many of the same benefits as a corporation without sacrificing ownership to multiple shareholders. Despite being a popular alternative to a traditional corporation, an LLC does have a number of additional regulations that vary from state to state. As a result, anyone interested in starting their own LLC will want to speak with an attorney to ensure that everything is order ahead of time.