There can be many important considerations when starting a business in Louisiana, ranging from the name of the company to customer-based concerns. In some situations, it is important to determine beforehand which type of business formation will best suit the start-up company and ensure that the proposed name has not already been taken. Market research is also a critical tool to determine who the start-up company’s customers are and what services or goods the customers wish to buy.
Other decisions that will have to be made when starting a new business include entity formation. Entity formation decisions will require the determination of which entity form is best for the start-up company. There are different options, including limited liability company, limited partnership or different incorporation options. Business formation decisions are important because they may determine what type of paperwork has to be filed and when, tax obligations and different procedures for profits versus losses.
Liability for the business and the individuals involved can also be implicated in entity formation decisions. For all of these reasons, choosing the correct entity form for the needs and goals of the start-up company should be carefully considered. When contemplating a business start-up, it is important to take the many important concerns involved, including entity form, company name, customers and the individuals involved in the company, into consideration when arriving at the best outcomes for the start-up company.
The dream of a start-up company is common to many. Ensuring that dream, and its success, may require careful understanding and safeguarding when making important decisions such as entity formation, as well as others.
Source: The Guardian, “Ten things to consider before starting a home business,” Hannah Martin, April 2, 2014