Setting up a company takes a lot of time. But it can be a lot easier when you hire the right employees.
Depending on the state, you may need to register your business name and obtain a registered agent. This person is the point of contact for your corporation and will receive service of process notices, government correspondence and compliance-related documents.
What is a company?
Companies are a central part of the economy in most countries. They provide employment, generate tax revenue, and produce goods and services. Companies have been around for hundreds of years and come in all shapes and sizes. To start a company, you must develop an idea for a product or service that will meet a need in the market. Then you must conduct market research to determine whether there is demand for your product or service. Finally, you must create a business plan that outlines the structure, foundation, mission, and goals of your company.
A company is an artificial legal person created under law to carry on a business or industrial enterprise. It enjoys rights and is subject to obligations independent of its owners, who are known as members.
Business structure
Developing your product, creating sales channels and networking to get your first big order are exciting parts of starting a business. Deciding what structure your new company should have is less interesting, but important. Your choice has ramifications for how the IRS taxes your business profits and whether your personal assets are protected in case someone sues your business.
A company is a separate legal entity from its owners and is responsible for its own debts and obligations. It’s a more complex structure with higher set-up and administrative costs and more reporting and legal obligations.
The right legal structure for your business depends on your long-term goals, ownership, plans to hire employees and legal risk. A specialized attorney can help you choose the best structure for your company. He or she can also assist with registration paperwork and compliance with state and federal laws. The cost of this guidance is often well worth the peace of mind it provides.
Legal structure
A company’s legal structure determines how it is taxed, how much liability it has and its ability to raise funds. It also affects the amount of paperwork a company must file each year and its legal rights and restrictions.
The business legal structure you choose depends on your personal circumstances, your long-term goals and your costs. There are five common business structures: sole proprietorship, partnership, limited liability company, corporation and cooperative.
A corporation is considered a unique entity, separate from its owners. It can own property, assume liability and enter contracts, but it must register with the state, obtain an employer identification number and pay taxes. It is a good choice for companies that anticipate going public or seeking venture capital. It can be expensive and complex to set up a corporation, but it offers more liability protection for investors than other structures. It also requires a higher level of governance and oversight by the board of directors.set up a company
