Choosing What Type of Business to Form in Indiana by Michael Hoffman
Whether you are an entrepreneur eager to open your first business, or someone looking to expand upon their current business, the decisions surrounding the formation of a business can be tough. There are many different types of businesses, each with their own set of positives and negatives. It is important to choose the right type of business for your situation. Once you know the type of business you want to form–limited liability company, corporation, etc.–it must be set up according to Indiana law. Speaking with an Indiana business law attorney is an essential step in the formation of an Indiana business.
There are a variety of factors that need to be evaluated in choosing the right business entity for you and your company. The following are just a few of the factors that must be considered when determining business formation type:
- Tax implications – Different businesses have different tax ramifications. Depending on the business, tax liability could fall to the business itself, or the owners may be held personally liable for taxes.
- Control – Every business is unique in the amount of control that is afforded to the owners, board of directors, stockholders, etc. You need to consider the amount of control you want each group of individuals to have when deciding the business type to form.
- Management – Similar to the amount of control an individual or group of individuals has, the type of management you want in the business needs to be discussed at the outset so that a business that allows for your choices is chosen.
- Liability – Who is going to be liable for the debts of the business? Will the owners take on personal responsibility for any liabilities incurred? Or, will the business have its own liability for debts, leaving individuals free from any liabilities from the business?
After you have outlined your wishes for the organization of the business and have therefore chosen the type of entity to establish, there are still a number of steps that must be taken. The formation of any business, whether it be a sole proprietorship, limited liability company, partnership, a business trust, or any of the other entity choices in Indiana, involves a number of steps. Generally, businesses must be registered in some way with the state of Indiana, and various paperwork must be filled out, including choosing a name for your business, tax paperwork, bank account information, and many other things in order to become a legal, operating business in the state.
The business law attorneys at Beers Mallers Backs & Salin, LLP are here to help you in the formation of your business. We are there for you from the very beginning and can help you throughout the life of your business. From making sure that the business is being formed properly to handling any issues that arise during operation, let us be your trusted advisors for various facets of the business. Contact us today to get started.