If you are launching your own business, you may realize that is a tedious process full of legalities. One of the most important legal steps you will take is choosing the business structure that you will operate under. Entrepreneurs in New Hampshire should educate themselves on their options concerning the structure of their startup.

LLC

An LLC provides a great deal of protection for you as a business owner. Limited liability corporations give you the freedom of business ownership without having to risk your personal assets if things don’t work out. If your business fails or you are sued by a customer, vendor or partner, you won’t be at risk of losing your home or other personal assets.

Sole proprietorship

This is the business formation that many people find the most appealing because it gives them all the power concerning their startup. People who form their own company typically do so because they want to be their own boss, and this structure affords that opportunity. However, under a sole proprietorship, your business assets and personal assets are all lumped together, meaning you can lose everything if your business doesn’t work out.

Partnership

Partnerships allow for two or more people to have ownership stakes in a privately owned business. There are other options to consider under the partnership structure, including limited liability partnerships and limited partnerships. However, each of those options carries its own pros and cons.

If you are starting a new business, you should seek the advice of an attorney who is well-versed in business law in your state. This attorney may guide you through the process of choosing a business structure and filing the forms you need to make your dream of business ownership a reality.

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