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How Do You Decide What Legal Structure Your Business Should Be?

Once someone decides to start her own business, one of the first dilemmas she will be faced with is: what kind of legal structure should I form?

The law offers various types of businesses, from sole proprietorships to LLCs to S Corporations to Not-for-profit corporations.  People starting a business may know what they want to do or sell, but they have trouble determining which legal structure is right for them.

When clients ask me this question I always start by telling them”it depends.”  I then pepper my client with a handful of questions to see how she feels about the following key factors:

– Control.  How much control do you want to have over the business you are starting?  If you want exclusive control then your business is going to take a different form from someone who is looking to share decision-making power.

–Liability.  Some legal structures do not protect your personal assets.  If you are concerned that the money you own personally (as opposed to the business funds) remains separate, you need to choose a legal form that provides for this.

–Raising capital. More basic entities (like sole proprietorships) are restricted in how they can raise capital.  If you are planning to raise funds through means like selling shares, you should consider a legal structure that allows you to do this.

–Taxes.  Each legal form is taxed differently.  You should get advice from an accountant and make sure that the form you choose will be the right financial fit for you.

If you are thinking of starting a business these are some great topics to consider before choosing a legal structure.  Do any business owners have other tips or factors they considered when deciding the legal structure their business would take?

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Top 3 Things To Think About Before You Quit That Crappy Job

I don’t know if it is the change of seasons or the time in my life, but I have been getting a lot of inquiries from people who are unsatisfied with their current job.

I am never one to argue that you should stay somewhere you are unhappy, BUT before you walk away from a regular paycheck you should take some time to assess where you currently stand.

You can start by asking these 3 questions:

1)   Do you have an employment contract? – If so, this may explain the terms of how you may permissibly leave and what you might be entitled to if your boss decides to let you go.  If you don’t have a contract, what you are entitled to is more fluid, but you can still leave with something if you negotiate properly.

2)   Does your employer want you out? – If the unhappiness works both ways, it is usually in the employee’s best interest to get laid off (as opposed to quitting).  Getting laid off can often entitle a person to unemployment benefits or severance.  There are often ways to negotiate an exit if both parties are unhappy.

3)   Can you navigate leaving on good (or at least neutral) terms?  A bad employment reference can be a problem in this economy and if you can stay on neutral terms with your employer you will be in a better position to be hired for your next, even better job.

Answering these questions is a great way to start thinking about how to exit an unsatisfying work environment and start to protect your own interests.  Once you determine where you stand you will be in a better place to assess your options, negotiate carefully and exit gracefully.