When you want to start a business, you need more than a name and an idea. You need to know how your business is going to be structured and who will be involved in running it. Fortunately, there are a few common types of business structures that can work for all sorts of companies, so it’s just a matter of learning a bit about each and figuring out which is the right fit for you. A Bergen County business formation lawyer from our firm is ready to help you with that.

What Are the Most Common Types of Business Structures?

There are a few types of business structures that you can choose from when establishing your own company. Common options include:

Limited liability companies, or LLCs: These are relatively simple to run but offer some of the protections that a corporation would, like a division between your personal assets and any business debts.

Partnership: This is for multiple people who want to share liability and decision-making abilities.

Corporations: These are subject to the highest regulatory requirements, but they offer the most liability protection for owners. There are also different types of corporations, like the S corp.

Non-profit: This is for businesses that are primarily designed for charitable or educational work.

What If I Want to Go Into Business By Myself?

This is a possibility. If you do not want to structure your business in any other way and you are the only one who works for your company, then you can be a sole proprietor. The sole proprietorship is becoming more common these days and it can even be used by workers who take on freelance jobs from multiple employers. It’s a simple type of business to run, but you are personally liable for the debts you accrue as you do business.

What Comes After Choosing the Right Business Structures?

Once you figure out which of these business structures is a good fit for you, you actually have to go to the work of setting up your company. This can involve:

  • Doing a search to make sure that no other entity registered in New Jersey has your desired company name already
  • Filing all relevant documents, like the articles of incorporation, with the Secretary of State
  • Creating a company agreement or partnership agreement if you are establishing a business with multiple people
  • Choosing a registered agent who can receive legal documents for your business

You may also need specific licenses and other documentation to start working, depending on what kind of field you are in. You also need to make sure that your business has its own EIN for tax purposes. If any of this has you confused, don’t worry! Our business formation attorneys are more than capable of walking you through this process and ensuring that nothing gets lost in the shuffle.

Talk to Our Attorneys

If you are ready to set up a business of your own, you don’t have to worry about dealing with all of the paperwork and other hassles on your own. Contact the Law Offices of Colin M. Quinn to set up a consultation with our team. We would love to tell you more about the process of setting up your business and how our attorneys can help.