| If you are contemplating forming an entity for your | | | | states will not let you form a corporation nor LLC for |
| business, there is a lot of information to consider. Here | | | | your practice. Instead, you must form a Professional |
| are some of the more esoteric things you will not see | | | | Corporation or the like. These entities tend to be |
| discussed in most how to guides. | | | | heavily taxed, so make sure you know what you are |
| The Next Google - Ambition and hope are the two | | | | getting into. |
| attributes of any new business. Nobody starts a | | | | Protection From Liability - As you probably know, a |
| business because they think it will produce just enough | | | | corporation or LLC protects you from personal liability |
| profit to get by. You, me and the guy down the street | | | | should the business run into trouble. This is great and all, |
| all think we are going to make billions and be the next | | | | but it still leaves you with a problem. All of the assets in |
| Google. Obviously, most of us are wrong. Nonetheless, | | | | the business can be lost! If the business has few |
| success is in the planning. If you hope to go public with | | | | assets, it really doesn't matter. On the other hand, this |
| your business one day, your choice of business entities | | | | can be a disaster for a business with a lot of |
| is really simple. The only business entity that can be | | | | expensive equipment for manufacturing, tools, property |
| taken public is the C corporation. You cannot take a | | | | and so on. If you are facing this situation, consider |
| limited liability company public, so keep this in mind | | | | forming two entities. One deals with the public and the |
| when you make your choice. | | | | risk associated with that. The second one holds all the |
| You Are A Professional - If you are a licensed | | | | valuable assets and leases them to the at risk entity. |
| professional, the idea of forming a business entity to | | | | Forming a protective entity make a lot of sense for |
| protect yourself makes obvious sense. There is, | | | | most businesses. That being said, taking the time to |
| however, a major problem. In many states, you cannot | | | | think through the process is critical to getting the most |
| escape personal liability by doing so. In fact, many | | | | out of them. |