The best business structure for most businesses is the one that allows for the most flexible designing. The one that allows those ‘minor details’ in the business-behind-the-business to be handled most effectively.
The applicable issues:
* accounting,
* taxes and tax management,
* owner and key-man relationships,
* investor capital or loans,
* hiring salaried employees and employee relations,
* hiring professionals
* purchasing and managing available funds
* implied partnerships
* building the business to sell and other exit strategies
* business continuation
* business expansion
* surviving lawsuits and handling audits.
Like it or not, businesses of all sizes will have to contend with most or all of these issues. So, which entity is most able to survive and prosper when the storms come???
Your basic choices in most states are:
* The Sole proprietorship
* The sub-chapter S Corp
* The LLC (Limited-Liability Company)
* The LLP (Limited Liability Partnership—new entity in most states)
* The LLLP (Limited Liability Limited Partnership—in a few states)
* The C Corp
Businesses will sooner or later have to cope with all the business-behind-the-business issues.
Question:
What business structure is the overwhelming choice of big business?
Answer:
The grand old C Corp.
Why? Because it is overwhelmingly effective at handling all the business-behind-the-business issues, IF properly designed. Yes, of all the business structures, only the C Corp allows maximum flexibility of design.
Not all C Corps are designed the same. Thousands of small and medium-sized business C Corps FAIL each year. They fail to provide, they fail to allow for full management options and they fail to protect. Thousands upon thousands haven’t been tested yet. Most of them will also fail because they’ve failed to establish their own credibility.
Do you have business-behind-the-business issues now, or do you see one heading your way?
Remember, if trouble comes and your business is not designed to handle it—everything you own is at risk including your personal assets.