Starting with the right foundation is imperative, so that, in the future, you don’t wonder what you might have missed, and can instead enjoy your growing your business. Many businesses start too fast and don’t keep success in mind. Starting with a success mindset means hiring an attorney to handle your needs now so that you never have to backtrack.
The most common forms of business are sole proprietorship, partnership, corporation and S corporation. A more recent development to these forms of business is the limited liability company (LLC) and the limited liability partnership (LLP). Because each business form comes with different tax consequences, you will want to make your selection wisely and choose the structure that most closely matches your business’s needs.
If you decide to start your business as a sole proprietorship but later decide to take on partners, you can reorganize as a partnership or other entity. If you do this, be sure you notify the IRS as well as your state tax agency.