Cover Your Butt Ta-Do Lists
Set up your
Establish the best business structure for you.
File it right and know what’s required.
By Karen Post
First-time business owner?
Confused about all the set-up options and requirements?
Want simple explanations to make the right choice?
Here’s your layman’s checklist to get
your business started today.
Set up your new business
Establish the best business structure for you
Owning your own business can be a rewarding experience. You get
to be the boss and control your destiny. With so many things to do
and think about, especially in the beginning stages of setting up
and launching your dream company, it’s important to be informed
about business structures and set-up.
The following is a simple guide to help you understand your op-
tions, make the best business structure choice and be aware of your
filing and record keeping responsibilities.
1. Answer these questions.
As you try to determine the business structure that is right
for you, think about how you would answer the following:
• How many owners will your business have, and how will
their roles and involvement differ?
• How large will your business be? How large do you want to
• What kind of profits or losses do you anticipate?
• How much money do you need to start your business?
• Do you envision taking the company public?
• How much control do you wish to retain? Do you want to
make all of the decisions yourself?
• What is the nature of your business? Is it an area that
might be vulnerable to lawsuits?
• Will you have employees? If so, will you eventually let
them become owners in the company?
• Can you deal with working in a structured environment?
• How much paperwork can you tolerate?
• Can you handle the costs associated with a complex legal
structure (accounting and legal fees)?
• What are the tax advantages and disadvantages of the
different business str