Organizing Your Company

At the onset of your new venture, you will need to address the legal form your enterprise will adopt. Should it be a sole proprietorship, a partnership, a corporation, or a limited-liability company?

This decision is driven chiefly by your objectives and those of your investors. But taxation and legal liabilities also play a part. The trade-offs built into the law can make the choice difficult; to get the most favorable tax treatment, a business must often give up some protection from liability, some flexibility, or both. This chapter outlines the choices available to the new enterprise and summarizes the advantages ...

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