Business Structure Advice

Business Structure Advice
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Institution
Dear John Owner,
Starting a business is sometimes a challenging undertaking especially for people who are going towards that direction for the first time. Starting a business requires a well-informed business plan to avoid making mistakes that could jeopardize the viability of the business, whether in the short-run or long-run. Before designing a business plan, one has to be aware of the type of business he/she needs to run, and the vision for the establishment of such business. A good business plan provides the hallmark under which to start and operate the business in pursuit of the mission of the business owner. In a business plan, one has to include the product or service that the business would deal with, and the owner or partners in the business (John Wiley & Sons, Inc., 2012). A keen market analysis of the economic rational pertaining to the intended business should be done to formulate the financial projections of how the business would thrive in the market. All the necessary information about the management criteria of the business should be thought through to help identify the right business to start. The issue of financial is of paramount importance. For a new business, one should know where to get the investment capital that would be enough at least to support the business for five months before it starts breaking even. All the necessary legal requirements for a type of business should also be put into considerable when formulating a business plan.
In the U.S, one has the option of four forms of businesses to operate. These are sole-proprietorship, partnership, limited liability corporations, and S corporations. In sole-proprietorship, one is fully liable for the business operations. This type of business requires lim...