THE QUESTIONS YOU NEED TO ASK YOURSELF BEFORE CHOOSING AN ENTITY FOR YOUR BUSINESS
Welcome back to our platform. From our previous post on choice of entity for your business, we bring to you the possible questions you need to ask yourself before embarking on your decision process.
It is vital to question yourself to get the actual answers on what you really want to do before setting up a business. Below are 10 questions every start-ups or business owners should consider.
Do you plan on owning and running your business yourself or with others?
The others, are they going to be equal partners to your business?
Are they going to be just investors, or are they going to help you operate the business?
Do you want to shield the assets of the investors, including yourself, from potential personal liability?
Do you want your business to be short-term or a lifetime enterprise?
Do you want to avoid double taxation, whereby the company gets taxed first, and then the shareholders thereafter?
Do you want to take measures to create a distinct and separate legal entity or open with less formality?
Do you want the company to have board of directors, which includes outsiders, original investors, or both?
Do you want to always be in control of the company and have a majority equity stake?
Do you want to open up a company whereby, you are always the operational officer but, you can move into an advisory role when the business grows and increases beyond your capacity to control?
These questions, automatically positions your mind on the type of entity suitable for your brand. Its purpose is to enhance your thoughts towards your capacity in running any of the entities. Therefore, selecting the appropriate entity in line with your capacity, visions and goals will help run your business effectively.
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