Selecting an appropriate legal/business structure for your company is one of the most important decisions you will make as a small business owner. When it comes time to choose a business structure, remember that there will be many long-term implications to your decision; so seeking the advice of a specialist is wise. Through their business advisory services division, the professionals at DRDA P.C. can help you develop a business plan for your start-up or franchise.
There are many legal and tax ramifications to each of the basic business structures listed by the United States Small Business Administration. They suggest that you answer the following questions before deciding on a business structure:
What level of control do you wish to have over your business?
Is your type of business vulnerable to lawsuits of any kind?
What is your expected profit and loss?
Do you plan on ever reinvesting earnings into your business?
How big do you want your company to grow?
Depending on your answers, there are five basic business structures offered by the SBA that may work for your business including:
Sole Proprietorship – owned by a single person
Limited Liability Company (LLC) – can have one or multiple members; many tax benefits
General Partnership – owned by two or more individuals
C-Corporation - can have an unlimited number of shareholders
S-Corporation - limited to 100 shareholders
For a more detailed look at each of the basic structures, visit the SBA’s website at www.sba.gov. Now on to what the DRDA does best; assist you in finding the money you need to open your business.
If you are fairly certain of what structure would best suit your small business, then you are heading in the right direction. In order to reach your ultimate goal of business ownership, you need to thinking about money matters. The DRDA team’s knowledge and expertise in the field of small business financing is unparalleled. If you already have your small business planned out to the last detail, but still need the capital to get it off the ground, then consider going a route not many people know about called a BORSA plan. Considered an alternative financing option, a BORSA plan is a legitimate way to use the funds stored in a retirement account such as a 401k, 403b, 475, or IRA rollover without incurring early withdrawal taxes or penalties. There are several ways you can use your retirement money to the benefit of your small business such as:
Combined with an SBA loan
Start-up capital
Equity injection
Small business like any other business is subject to rules and regulations. Make sure you know what you are getting into before launching a start-up. The team at DRDA P.C. can help you with every step along the way, including the financing stage. Call 281-954-6040 today or visit www.drdacpa.com to learn more about a BORSA plan or to view the long list of client services available. With numerous business advisory services to choose from such as asset protection, cash-flow management and more, DRDA P.C. is the one you should turn to for all your small business needs.
