Occasionally, I’ll get a question from someone about starting a business using the "mom-and-pop" business style of the partnership.
The partnership is the most simple form of business entity. Partnerships were around from the dawn of time. The Kings of England ruled by partnerships (and an awful lot of swords). Partnerships are easy to start, and they’re economical.
However, like the monarchies of England, the partnership comes to a tragic end when bad things happen. For this reason, partnerships are the worst forms of business entities, in light of today’s modern business advances.
Most entrepreneurs opt for the limited liability company or corporation when starting their soon-to-be mega-empires. These entities provide financial security and safety, and the enduring stability most people desire when they start their business. The LLC and the corporation offer the business owner limited personal liability for business debts and other devastating business related events. Additionally, the two entities are easy to form, and continue even after an owner leaves the business.
So, is there any reason why you wouldn’t form a LLC or corporation? Not really, unless your business is going to exist for a micro-second. In Oklahoma, forming a LLC costs $100, and requires 1 sheet of paper. $100! That’s a miniscule amount of money to pay for an infinite amount of protection and other benefits.
Moreover, the LLC gives a business owner an ample amount of options to increase revenue streams and increase member profits. Many business owners choose the LLC because of its ease of formation, and taxation benefits. Quite simply, the LLC is almost the perfect business entity. Don’t risk the problems of the partnership, form an LLC or other protected business entity today.
If you’re considering a new business, it’s important to get a variety of facts and opinions. Absolute Legal Services, LLC can help you evaluate your business goals, and determine which business entity will suit your needs. Our low-cost (usually $350) business formation options can help you get moving on your business idea. We offer business planning and organization, outsourced legal counsel, and collections management services, just to name a few. Contact our office at (405) 748-0318, or by email at contact@absolutelawfirm.com, to speak with a business attorney.
