Home-based business legal structure
Is there anything different about legally structuring a home-based business?
Legally, a home-based business is like any other business. And just like other businesses, you will have to decide what legal form you want your business to be.
Most home-based businesses start as sole proprietorships, either out of ignorance, necessity, or the desire to keep it simple. There are certainly advantages to sole proprietorship, but there are some disadvantages as well. For example, a sole proprietorship offers the owner no liability protection in the event there is a claim against the business. Conversely, a corporation or limited liability company can offer such protection.
No decision about legal structure should be made until you have the knowledge and advice of professionals, starting with an accountant who can tell you the advantages from a tax perspective, and an attorney to advise you on the legal issues.
Search further to learn about other legal entities.
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Related Categories: Business Planning, Business Start Up, Business Structure, Entrepreneurship, Home-Based Business, Legal
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