It is very important to have a good business structure today. This is true for companies with only a few employees, like freelancers, and for huge companies with 500 employees. A good business structure can help any size company succeed.
Why Structure Your business
“The goal for structuring your business correctly is for you to get approved for funding.”
To get funding, you need to meet certain standards that the lenders and underwriters set. You can do this by structuring your business correctly from the beginning. If you have a new business, it will be easier to do this. But if you have an old business, it is more likely that you did not structure it correctly at first.
What Business Type to Use
“You must completely divorce yourself from your business as soon as possible.”
When we talk about when you registered your business, we mean the date that you filed an article of incorporation with the Secretary of State. To keep it simple, we recommend opening a limited liability company (LLC). This will protect you if you ever get involved in a lawsuit. If you want to consider starting an S or C Corp, because your situation is different, please ask your CPA or tax experts. An enterprise or a DBA will not work for what will be the methods used by us to get business funding.
The Major Stages of Structuring Your Business
There are four important stages in setting up your business. These stages are: business identity, business registration, business listing, and establishing business credits. It is important to do these things from the beginning so that your business is set up correctly.