20 Dec Create a LASTING Effect
Most people agree that if you want to own or run a business, it is typically a good decision to form a legally recognized entity, rather than just get up one morning and start selling your goods or products, providing your services, etc. This, of course, is dependent on your particular needs, business model, and other goals and circumstances, but it generally holds true as a baseline rule: Want to own a business? Then Incorporate or Organize.
But the reasons for organizing or incorporating are essential for understanding this baseline rule, for selecting the right entity, and for planning for success. In understanding those reasons, you will be better situated to form a LASTING business that leaves a LASTING effect.
L – “L”imited liability protection: gain and keep it for the owners;
A – “A”voiding missteps: take the smart actions for your business;
S – “S”tructure: plan the ownership and management of the business;
T – “T”ax setup: choose the right fit for your needs;
I – “I”nclude exit strategies: it’s always important to plan for what’s next;
N – “N”ucleus of decision-making: prep the business command center;
G – “G”rowth: maximize the life cycle of your business
Each of these individual elements needs additional time and attention. But keep these factors in mind as you start your formation process.