Starting a business? One of your first big decisions is choosing the right legal structure. This choice affects your taxes, liability, and how you operate day-to-day.
Think of it like choosing the right foundation for a house - it needs to match what you're building.
Engagement Message
Can you think of a local business in your neighborhood with "LLC" or "Corp" in its name?
A legal structure is simply the official way your business exists in the eyes of the law. It's like your business's legal identity.
Just like you have a name and Social Security number, your business needs its own legal identity too.
Engagement Message
What do you think happens if you don't pick any structure at all?
If you don't choose a structure, you automatically become a "Sole Proprietorship" - the simplest form. You and your business are legally the same person.
This works great for many small businesses, but it's not always the best choice as you grow.
Engagement Message
Can you think of any downsides to being personally responsible for everything your business does?
The main structures are: Sole Proprietorship, Partnership, LLC, and Corporation. Each offers different levels of protection and complexity.
The key is matching your choice to your specific situation - your risk level, number of partners, and growth plans.
Engagement Message
Which sounds more important to you: simplicity or protection?
Here's a quick example: A local graphic designer serving neighborhood businesses might choose Sole Proprietorship for simplicity. But someone opening a community café with employees might choose LLC for liability protection.
Same principle, different needs.
Engagement Message
What kind of local business are you thinking about starting or already running?
