Many potential entrepreneurs may have a great idea and the dream of a start-up business but not know how to finance it. Starting a business can sometimes be unquestionably difficult. There are many considerations and potential challenges associated with a business start-up. Nearly eighty percent of the estimated 27.5 million small businesses in the U.S. obtain their financing through bank loans, lines of credit and credit cards. In today’s financial climate it can sometimes be a challenge to finance a start-up company. Potential sources of funding include banks – commercial, community and credit union, government-assistance loans or relatively new crowdfunding.
Business formation can involve many details in addition to financing the start-up company. New business owners will likely have to make decisions concerning some, if not all, important considerations such as entity form, regulatory compliance and issues related to investors and financing. There are important factors to evaluate within each consideration such as asking the question if a limited liability company, limited partnership or business incorporation the best business form for the individual venture.
There can be many options for business formation and it is important to understand not only how to create the type of entity a party wishes to establish but also to understand which type of entity is best in the circumstances. It is also important to understand how to preserve the tax and legal liability protections of the selected business form on an ongoing basis.
A trained business attorney can help a new entrepreneur, or an older business owner, evaluate these important considerations given the needs the party is facing today. An experienced business attorney can tailor the business formation and business planning decisions a party makes to the unique circumstances and goals the party is facing today and in the future.
Source: Entrepreneur, “How to Finance a Startup Today,” Julian Hills, Oct. 21, 2013