If you know that you want to start a business, but you are not entirely certain on what kind, then that is actually a fairly common situation to find yourself in. The truth is that there are plenty of things you might need to think about here if you are going to have a good chance of running a business you can be proud of. In this post, we are going to discuss what the major types of business are that you can run, so you can hopefully see which is going to be appropriate for your needs and hopes.
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Sole Proprietorship
This is the name for a business that is actually just one person on their own, and it’s something that you are going to want to consider if you have a great idea but you only need to work on it yourself. This does not preclude you from being able to hire other people - that is always possible if you need to in the future - but mostly you will probably be working on it on your own. Often this is a home-based business that you are able to run entirely yourself, so if that is the kind of business you are thinking of running, it’s a sole proprietorship you want to go for.
LLC
This, otherwise known as a limited liability company, is what you set up for something a little grander than a sole business, where you need the business to have its own business account separate from yours. Essentially the point of this structure is that it is going to be a separate legal entity from yourself, meaning that there is limited liability to you when something goes wrong, such as the business getting into trouble legally or financially. As such, it is a very useful and attractive business type for many.
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Nonprofit
Perhaps you are instead hoping to run a charity or other such good cause business. If so, what you are looking for is a nonprofit, and these are actually distinct kinds of organizations which have to be run in their own way legally. You need to make sure that you are starting it up as such, and that you follow all due process. Look into how to start a nonprofit if you are curious about it, as there are a few things that you will need to bear in mind along the way.
Corporation
Finally, if you think that you are going to be running a sprawling, huge company, then it’s likely that this is going to be registered as a corporation. These are much larger vehicles, and they are useful if you think you will need to employ a lot of people and generally have a lot more going on. So make sure that you are aware of the ramifications of running such an outfit, and then ensure that you work at it.
