Tuesday, July 10, 2012

What Legal Form Should My Business Take

A colloquy with a student:


I was thinking about starting a company for the Import/Export business. Just wanted your recommendation on what I need to keep in mind. What type of corporation would you suggest - LLC or S-Corp? Also, the business category under which it would need to be opened? Any suggestion is greatly appreciated.


Well, understand the legal form has to do with taxes, and not much else, so this is a question for your CPA, not a lawyer.  Given your circumstances, what form should your business take?  Ask a CPA.  Your your CPA will tell you, given your circumstances (does your wife work, do you rent or own) what form the biz should take.



But first get customers,   they answer all sort of questions, then you know what you are doing.

As to biz category, well, just look at the list  "wholesaler, fruits..."

Thank you! Does it make sense to wait till I get a customer to incorporate? I was hoping to do my marketing as a "Company" instead of promoting it as an Individual. 

Normally when you incorporate, does it restrict you to any particular type of Products? I meant to ask, if I incorporate an "Import/Export" company, am I allowed to trade any "product"?

In the text I talk about NOT using "import export" in the name...  and as to marketing, to whom?  We don't market until we test our hypothesis...  the test is so likely to change your ideas about your business, you should wait until you have conducted your tests to decide what business you will have, and what legal form it should take.

Whether you are pursuing plan A or plan B, test your hypothesis, find out if you have customers, then you can form a business.


Feel free to forward this by email to three of your friends.


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