SNB Tips on How To Structure Your Business
How To Structure Your Business Is your new business a “lemonade stand”? That’s the term we use to describe businesses that were set up quickly with lots of passion but will fade into oblivion instantly when hit with the first sign of a legal or tax challenge. Lemonade stands are not serious businesses and are not worthy of funding. Lemonade stands are here today, gone tomorrow, and never create a legacy of wealth or success for their founders. Don’t let your next business be a lemonade stand. Instead, opt for the “Fortified Cash Machine” model by using these five smart tips for structuring your new business right from day one: 1. Set up an “operating entity” rather than being a sole proprietor. With guidance from your tax attorney or CPA, select and establish an operating entity, such as a corporation or LLC, through which to conduct your business. While operating as a sole proprietor is certainly the easiest method, doing so clearly shows you’re more interested in build...