To many, going into business for themselves is an attractive option.  Starting a business affords individuals with flexibility, creative control and the opportunity to be their own boss.  Despite the advantages, however, starting a business could involve long hours and the risk of losing a reliable or steady income.  If an individual weighs the options and decides to begin a new business there is much to take into consideration before getting it up and running. 

What preparations must I make to establish a business?
The following is a list of things that business owners are generally required to do in preparation for starting a business:

• Obtain licensure from city and county governments.
• Obtain permits from agencies such as health and fire departments.
• Ensure that the business operation is in compliance with zoning regulations.
• Decide upon whether to organize the business as a corporation, partnership or sole proprietorship.
• Decide upon tax status.

For most individuals, these issues are difficult to resolve without the assistance of a qualified attorney.  While chambers of commerce are available for general assistance, an attorney is typically required for counsel specific to the type of business in question. 

What are the various methods in which I can organize my business?
 Of utmost importance when establishing a business is deciding upon which type of business entity to form.  The three most commonly formed business entities are corporations, partnerships and limited liability companies.  Each of these entities has its advantages and disadvantages and a qualified attorney can provide assistance in deciding which of them is best suited to the business owner’s specific needs. 

• Corporations:  Corporations may have one or more owners, called shareholders, and may have any number of employees.  Shareholders have limited liability, meaning they are generally not held personally responsible for harm done behind the cloak of the corporation.
• Partnerships:  Partnerships must have at least two owners (a corporation can be a partner), and may have any number of employees.  General partners are sometimes at risk because they have unlimited liability, even for acts done by partners in furtherance of the partnership.
• Limited Liability Corporations:  An LLC is essentially a corporation which is taxed as a partnership.