
A lot of people talk about the idea of starting their own business, whether that is a mobile app or a manufacturing company. I say go for it. I love the enthusiasm and vigor entrepreneurs bring to the conversation. However, many people enter into new ventures without any formal business structure. Lawyer 101 says to get everything in writing and have all interested parties sign it, especially when it comes to a new business. I’m sure the Winklevoss twins and that other guy whose name is hardly worth remembering still cry at night thinking about what they could have done differently.
So you have a new idea, you have a team together, and you’re going to make a killer app that gets you rich or you’ll die tryin’. Stop! Before you go any further, you want to get organized: who is doing what, how much everyone contributed, and how much they get. The easiest way to do this is to organize a business entity, which can come in the form of a Limited Liability Company (LLC), Corporation (either C or S-Corp), Partnership (limited or general), or, if you’re going at it alone, a simple sole proprietorship may work just fine. For my money, I vote LLC and here’s why:
More after the JUMP…