Pay Me Now or Pay Me Later is a series of short tips on common legal mistakes small business owners make.
Tip #1 - Failing to Choose the Best Entity Structure for Your Business
An entrepreneur rarely starts a business without fully vetting the potential product and/or service to be offered by the business and the market for those items but once that process is complete and the entrepreneur has decided to go forward, often little thought is given to the best entity structure for the business and its owners. Yet choosing the wrong entity structure may have significant negative tax and other ramifications to the owners and may place unnecessary liability risk on the owners or on different aspects of the business. The best legal structure for your business will depend on several factors and a balancing of the relative importance of those various factors, an area in which a qualified legal and/or tax professional can provide great assistance.
