fbpx

#13: Choosing a business structure: From sole proprietors and LLCs to corporations and nonprofits

#13: Choosing a business structure: From sole proprietors and LLCs to corporations and nonprofits

#13: Choosing a business structure: From sole proprietors and LLCs to corporations and nonprofits

#13: Choosing a business structure: From sole proprietors and LLCs to corporations and nonprofits

Starting a business basically turns you into the final judge and jury for about 12,000 different decisions.

Maxine Waters

This is great, but it might also be a little bit unnerving when you’re considering X vs. Y without knowing a whole lot about either one.

I created this episode of The Shontavia Show to walk you through one of the first and MOST IMPORTANT decisions you’ll make in business, whether you realize you’re doing it or not.

This decision…..drumroll please….is all about how you’re going to operate and do business out in the world.

There are more than 12 different types of business entities out there. Making the right choice could make a huge difference in your business (and life), so you want to spend some time on this one. Depending on the complexity, you may need to confer with a lawyer on it.

As to not be terribly overwhelming, this episode of the show covers the four most popular types of business entities.

 On the show, I define and describe each one, including how you go about getting one through the appropriate Secretary of State‘s office (or its equivalent). I include the benefits and drawbacks of each type.

Check out the full episode below!

To summarize this episode, there are four major types of business structures:

(1) sole proprietorships,

(2) LLCs,

(3) corporations, and

(4) nonprofits.

Before hopping right into any particular type, you should consider the pros and cons I outlined in this episode.

Questions & Action: Register or incorporate your business ASAP

After you’ve had a chance to watch the video, I’d love to hear from you in the comments section!

Please answer the questions relevant to your current situation:

  • Have you registered your business yet? What’s holding you back?
  • Are you still unclear on what kind of business entity works for your type of business?
  • Are you ready to register/incorporate your business? If you haven’t done it yet, what are you waiting for?

Please give as much information as you can in response to these questions. I’d be happy to share more tools and resources that help you get what you want. 

Check out the show notes at the end of this page for a few resources from this episode.

Thank you so much for joining me on this roller coaster of an experience.

I am eternally grateful that I get to do this work with wonderful people like you each day.

                                                                  Let’s make it happen,

Show Notes

Secretary of State Offices: https://docs.google.com/spreadsheets/d/1DYXz8XV2HwTiTTyeqNlaSpnSF6iD27xxYWhF25KkMXw/edit#gid=634347005

Choose a business structure – Small Business Administration: https://www.sba.gov/business-guide/launch-your-business/choose-business-structure

Choosing a Corporate Structure: https://shontavia.com/choosing-a-corporate-structure-advice-from-a-business-law-expert/

Why you need a separate business entity: https://shontavia.com/why-you-should-incorporate-your-business/

How to get a tax ID number for your business: https://shontavia.com/tax-id-numbers-biz-better-have-my-money/

Registering your business: A directory: https://shontavia.com/where-to-incorporate-your-business-a-directory/

LLC vs. Corporation: Everything you need to know.: https://www.mycorporation.com/learningcenter/llc-vs-corporation.jsp

 

Interview with Professor Carliss Chatman on business creation:

Share This