One of the biggest goals for many people all across the United States is the idea of working for oneself. Owning your own business is a lofty goal, but it can be done. One of the first and most important decisions you make as a business owner is choosing the type of legal structure for your company. This decision should not be taken lightly as it will have a major impact on how you raise money for your company, how much in taxes you end up paying out, and even the personal liability you're up against should something happen.

Depending on the type of company you want to be, one entity can be more beneficial than another for your company. Hiring a corporate lawyer is the best way to go before making the decision on your own. It can end up saving you a lot of time and money later on because you got the expert advice you needed to make the best decision for your company.

Corporation

If you're looking to lower your personal liability should something happen to the company later, a corporation is the way to go. The company itself acts as a completely different entity than the people who own it. This means should someone decide to sue the company, the owners would not be held responsible. There can be drawbacks to choosing to be a corporation. The amount of paperwork required and the cost of forming a corporation push many business owners to choose another entity over becoming a corporation. 

Partnership

A partnership can be great when there are two or more people starting a company and each individual does not mind carrying some financial obligation of the business. By having a partnership, each partner carries some responsibility but they aren't held liable for all losses. 

Sole Proprietorship

One of the most common business entities in the United States is the sole proprietorship. For those who are looking into starting a business by themselves, a sole proprietorship is the easiest and least expensive to form. The drawback is that the owner is held personally responsible for the entire company. 

Limited Liability

This type of entity is becoming increasingly popular among new business owners. It allows a company to take advantage of the corporation aspects, while acting more like a partnership in a lot of ways. This means that the owners are shielded from much of the personal responsibility, while they can still be passed the losses and profits of the company. 

Talk to local lawyers like, Carter West Law, for more information.