Business Structures

2 Small Biz Guys engage a pretty dry subject with a little flair – business structures. Although the topic is about as interesting as watching paint dry, business owners have to face the fact that their business must have some legal structure. We are not attorneys and you are advised to consult both an attorney and CPA when determining how to structure your business.

The basic business structures include Sole Proprietorship, Partnership, C-Corporation, S-Corporation, Limited Liability Company, Trusts and Employee Stock Ownership Plan. The structures move from very simple with complete liability of the business owner to somewhat complex and less direct liability. Often businesses go through a progression or evolution from one to another over the course of the business’ growth. We discuss the various forms and the distinctions of each regarding personal, financial and tax liability.

Initially, determining a business name requires various legal forms, checking with the Secretary of State for the availability of the name, and filing appropriate paperwork with the State Corporation Commission. Every state is slightly different yet very similar in the process. For branding purposes, your business name should be descriptive and distinct regarding the business itself. It’s always best to describe what you do in your business name.

We close the show talking about the growth of holacratic businesses, like Zappos, and their challenges as Millennials take over the world.

You will find some useful information in our discussion and perhaps gain insight toward your own business path.

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About Ray Silverstein

RAY SILVERSTEIN is an entrepreneur, author and speaker revered for his high business intellect and ability to communicate meaningful and practical concepts to those wishing to achieve success in business. As the President of Peer Advisory Training and President’s Resource Organization (PRO), he is instrumental in creating breakthrough moments for executives wrestling with an assortment of personal and organizational issues. Ray describes himself in metaphorical terms as both a corporate chiropractor, one who helps straighten out businesses and a corporate farmer, one who provides the corporate fertilizer that helps business grow. He currently presides over seven peer advisory groups in Chicago and Phoenix.