Types Of Business Planning

However, depending on your products and location, you may need to register for local business permits with your city or state.

An important thing to note is that there isn't a legal or financial distinction between the business and the business owner.

If you're starting your own business, you'll want to create a business plan to help you better outline your goals before committing to one of the business types below.

One of the first challenges new entrepreneurs face is deciding what type of business they should register.

Just keep in mind that within a partnership responsibilities and liability are split equally among each member.

However, there are several types of partnerships (such as limited partnerships, discussed in the paragraph below) that will allow you to define the roles, responsibilities, and liability of each member.You'll need to file very specific documents with the state, followed by obtaining the appropriate business licenses and permits.Next on our list of business types is a Limited Liability Company, better known as an LLC.Most likely, if you're starting off as a smaller business, particularly one that only operates online, declaring yourself as a corporation wouldn't be appropriate.However, if you're already an established business with several employees, listing your company as a corporation might be the correct move.Most common is what's known as a "C Corporation," which allows your business to deduct taxes much like an individual - the only problem with this is that your profits will be taxed twice, both at the corporate level and at the personal level.Don't let this fact deter you, however - this is extremely common, and if you currently work for a company with multiple employees, that's likely the business structure they're using.Having someone to help share the work of starting a new business is definitely worth the extra paperwork.A limited partnership, or LP, is an off-shoot version of a general partnership, and while it may not be as common, it's a great bet for businesses who are looking to raise capital from investors who aren't interested in working the day-to-day aspects of your operations.There are a number of books and resources for this.Many of them recommend using the Small Business Association as the starting point since they maintain local offices.


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