When starting a business, there are many decisions that an Oregon owner has to decide regarding taxes and finances. One of these decisions is determining the structure of the company, a choice that will impact certain aspects of operations for years to come. Before making this decision during business formation, it is beneficial to carefully research implications and benefits of different structure options.
In most cases, business owners choose a limited liability company, sole proprietorship and corporations. Of these, the sole proprietorship is the most common option, popular for solo entrepreneurs launching their business endeavors for the first time. The optimal choice of structure depends on the unique needs and goals of the business as well as how many owners there are and whether the owner is interested in bringing in investors.
The choice of business structure will have a large impact on how the business is taxed. In a sole proprietorship, the owner is able to make decisions without getting input from others, but he or she is also personally liable for business debts. With an LLC, this structure largely protects an owner from being personally liable for business-related debts. There are specific benefits and potential drawbacks for each type of structure.
During the business formation process, an Oregon entrepreneur will find it helpful to do sufficient research before making any important decisions regarding taxes and financial operations. It may also be beneficial to discuss options with an experienced business law attorney. With the right guidance, a business owner can make choices that will lay the foundation for long-term success.