Are you considering starting a business in Georgia? If so, you will need to decide on a business models to follow. Not only will this decide what sort of areas you will fall under in regard to legal matters and taxes, but it will change the way you interact with your company.
The U.S. Small Business Administration says that there are several types of business structures, each with different benefits and drawbacks. These types are:
- Limited Liability
- Sole Proprietorship
- S Corporation
Depending on the needs of your company, the type of model you want to go for will change.
For example, if you are running a smaller business and want to have as full control over things as possible, you will likely want to go with sole proprietorship. Cooperative situations allow business owners to work together to reach a common goal, which means less exact control over things but also less stress on you to bear all of the financial burdens alone.
Partnerships are more versatile, and can change depending on circumstances. Again, this is a good option for people who are looking to share the burden of owning a business. Limited Liability companies generally tend to have the flexibility and tax efficiencies of a partnership while having the features of a corporation. On the other hand, corporations are for large establishments with many employees and is one of the most complex systems available.
If you would like to read more about these systems, please visit our web page on the varying types of business structures and their benefits.