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  • Team
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Entrepreneurs: Choosing a legal structure for a business

7.12.18

Starting a business can be an exciting endeavor, but it can also be a complex process. Entrepreneurs in New York that are seeking to form a new company may need to consider a variety of factors when choosing a legal structure for their business. Since this can be a major decision, a prospective business owner may find it advisable to speak with an attorney for guidance in covering every aspect of business formation.

When it comes to choosing a legal structure for a business, entrepreneurs have several options to choose from, each of which may come with its own potential advantages and disadvantages. One option is a sole proprietorship, which is most common among individuals who wish to start and run a small business on their own. When two or more parties wish to enter a business relationship, a partnership could be the correct structure to pursue.

However, a partnership isn’t the only option available for multiple parties, as these parties could also choose to act as members by forming a limited liability company. Entrepreneurs also have the option of choosing to form a corporation. This option is most common for larger and more complex business entities that will take on numerous employees or will consist of multiple shareholders.

Entrepreneurs generally place a high priority on ensuring they cover every crucial aspect upon forming a new business. However, with a variety of aspects to consider, a similar process can be stressful and intimidating. Fortunately, there are attorneys who can provide a person in New York with some much-needed guidance on choosing the correct legal structure for his or her company.

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