Owning and operating a business is a goal shared by many in Wisconsin. These people are not afraid of working hard for a living. However, they would prefer to earn money for themselves rather than helping a company or individual acquire wealth. Getting to be your own boss also attracts many entrepreneurs.
When forming a business, you must decide how to structure your company. For most, this involves choosing among the following:
- A limited liability company (LLC)
- A corporation
- A sole proprietorship
- A partnership
Each business structure has pros and cons. It is up to you to consider these and find the structure (aka entity) that best meets your needs.
A partnership may be the solution you seek
It takes money to start a new business. When your funds are limited, it might make sense to partner with someone who shares your business goals. A business partnership allows you to split the costs of your startup with another party. Other advantages and disadvantages of a partnership include the following.
- Pro: A partner may bring access to more capital.
- Con: If your partner breaks any business laws, you will share liability.
- Pro: You may appreciate having someone with whom to share the workload.
- Con: Taking on a partner means sharing profits with another person.
- Pro: The knowledge and expertise a partner brings could improve your business and your profits.
- Con: You and your partner could experience conflicts about how to operate or expand the company.
To help you make this and other well-informed decisions about starting a new company, consider learning more about business law in Wisconsin. As a bonus, this step will educate you on critical matters like what to do if a legal dispute arises.