Deciding about the Business Entity

When you start a new business, you need to decide how it will be identified. You have two broad options: you can either establish a sole proprietorship or a company. Starting as a sole proprietor allows you the flexibility to keep the structure and operations less formal. It is ideal if your investment is small and you want to restrict operations to your locality. If you’re interested in operating at a larger scale, maybe opening several branches in the city, or expanding your services to other states, it makes more sense to get your business registered as a public or private company. Remember, that as a sole proprietor, you can be held personally liable if there are lawsuits or debt recovery proceedings against the business.