Poll: What Business Structure Do you Use?

December 11, 2007 by Dane | 5 Comments
In Business Structures, Polls

How's your business structured? If you haven't started a business yet, how are you planning to structure it?

In the comments, why did you chose what that structure?

Comments

John Harshem on December 11th, 2007 at 2:33 pm

I don’t see any reason to bother with incorporating if, (1) you’re not looking for funding, and (2) you to do your taxes yourself.

I’ve made (and lost) probably a million dollars in my lifetime, and I’ve always been a sole proprietor.
John Harshem on December 11th, 2007 at 2:35 pm

Number (2) should read: “You like to do your taxes yourself.”
Steve Brodsky on December 11th, 2007 at 4:03 pm

Bad advice above. Almost every business needs to be incorporated or LLC’d. Otherwise, if the business gets sued for an unpaid debt or other type of injury, YOU could be responsible to pay the judgment PERSONALLY. If you have a job, a house, a car, or a bank account, that could mean loss of all of them. John’s lucky that he has never been in that situation, but here in the United States of Litigation, doing business as a sole proprietor is reckless.
Dane on December 11th, 2007 at 8:28 pm

Wow, I’m really surprised by all of the sole proprietors!

Steve: If someone owns the business and manages the business day-to-day, why shouldn’t they be personally responsible for any debts the business incurs or injuries caused by the business? Who do you think should be responsible?
Steve Brodsky on December 13th, 2007 at 7:54 am

Dane… I won’t debate whether or not the rules are fair, equitable, etc. The concept of protection from personal liability via the corporate entity has been in place for hundreds of years. I’m just trying to make business owners aware of the way it is. So, I repeat: If you want to protect your personal assets from lawsuits filed against your business, you must incorporate. It’s a relatively cheap insurance policy.