So you're ready to throw in the towel and start a new business. Congrats! It's a big milestone! Setting the proper foundation is crucial, whether this is a side gig, a passive real estate investment, or something big!

The first decision you'll need to make is choosing the appropriate legal structure for your business. This choice will affect your tax obligations, protect your assets, and protect you from liabilities. So it's important to tread carefully.

Even if you're planning to consult your accountant or attorney to guide you through this process, we strongly recommend educating yourself about the options available. Here's why:

1. While your accountant or attorney is there to provide expert advice, no one has a deeper vested interest in your business than you. A well-informed business owner is something any good professional will appreciate.
2. The most suitable business structure for your needs can change over time. What makes sense now may not be ideal down the line, so it's good to understand the flexibility and constraints of each option.
3. If you're considering investing in multiple businesses, the optimal legal structure for your primary business may not be the best fit for your secondary one.

By taking the time to understand the various business entity options, you're positioning yourself for long-term success and peace of mind.

We have categorized business structures into two groups. The first group comprises the most commonly encountered type. Click on each of them to learn more about them. 

1. Sole Proprietor 
2. Single Member LLC
3. Simple Partnership 
4. Multi-member LLC 
5. C Corporation
6. S Corporation
7. Assumed Name / DBA - Doing Business As

The following are less commonly seen in practice:

1. PLLC & PC - Professional LLC or Corporation 
2. Other types of partnerships: LTD, LP, LLP or GP
3. B Corps / Benefit Corporations

There are several types of trusts that may be beneficial depending on your needs. Here are a few examples:

1. Charitable Trusts: These include Charitable Remainder Trusts (CRTs) and Charitable Lead Trusts (CLTs), which are often used in conjunction with tax planning. 

2. Estate Planning Trusts: There are multiple options available for estate planning, such as Revocable Living Trusts, Irrevocable Trusts, and Testamentary Trusts.

Stay tuned for part 2, in which we will explain each of them...

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