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What should an entrepreneur know about business formation?

On Behalf of | Jul 22, 2020 | Business Formation

Starting a new company is an exciting step for an Oregon entrepreneur who has been planning and dreaming about this venture for years. However, launching and operating a successful business requires more than just having a good idea and maybe creating a social media presence. There are important financial and legal considerations to take into account when walking through the business formation process, and these choices can have a long-term impact.

After developing a business idea, it is then important to start researching and understanding the market. This will provide clarity as a company seeks to identify the target audience for advertising and determine who will most benefit from the products and services offered. After this, a business owner will need to register the company, first choosing the appropriate entity for the business. This choice impacts things such as personal liability for business debts and taxation.

Choosing the right structure for a company depends on factors such as the number of founders, long-term goals of the owner, type of operations and more. A sole proprietorship is for solo entrepreneurs, where a partnership is a business with multiple people running it together. A limited liability company is a blend between a corporation and partnership. A careful assessment of the business plan and goals can help identify the right structure choice for a company.

When walking through the business formation process, it can help to first discuss plans with an experienced Oregon business law attorney. Professional guidance can help ensure that mistakes are avoided that can cause problems down the road. It can also help an entrepreneur make smart choices during the initial stages of his or her business.