When starting out, the first thing most entrepreneurs want to do is to establish their business as a limited liability company or a corporation. Although the pros to forming an LLC or corporation include protecting against personal liability and taking advantage of tax benefits, they can be costly to set up and to maintain. Take into consideration the line of business you’re in, your potential exposure to risk, your future plans for the company, and your personal assets to select a business entity structure that best fits your unique circumstances.
If you’re just starting out and you’re unsure if this entrepreneurial life is really your cup of tea, consider beginning as a sole proprietor and graduate to LLC or corporation status as your business evolves and your circumstances change. Remember to keep your eyes in your own lane. What’s right for someone else may not be right for you.