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Slinde Nelson

Rethinking the structure for business formation

On Behalf of | Apr 21, 2020 | Business Formation

The choices that an entrepreneur will make during the startup process will impact an Oregon business for years to come. Making the decision of the specific legal structure of a business will determine things such as taxation and the owner’s personal liability for business debt. Sometimes, the structure chosen during the business formation process is not working long-term. It may be necessary to rethink and ultimately change this designation.

As a company grows, its needs and objectives will change. While it can be complicated to change the structure of a business, it may be necessary in order to allow the company to eventually reach its maximum potential. There are both legal and financial ramifications to this decision, and an entrepreneur may find it helpful to seek experienced guidance before moving forward with a change. An example of changing a business structure is a sole proprietorship changing to a partnership.

A limited liability company is a popular option for many Oregon entrepreneurs. It has characteristics of both a general partnership or sole proprietorship and a corporation. There can be benefits and drawbacks to every business structure choice, and it’s prudent to consider both the immediate needs of a business and long-term objectives when making this decision.

Before making an important decision, it may help to discuss business concerns with an experienced legal ally. An attorney can provide invaluable assistance during the business formation process and when it is necessary to change the original structure of a company. Having knowledgeable assistance can help a business owner pursue his or her goals with minimal setbacks and complications.