INCORPORATE

To start a business, all you need to do is hang up a shingle. You can operate by yourself as a sole proprietor, with others as a partnership, or in a formal entity such as a corporation or Limited Liability Company (LLC). As a sole proprietor, there are few legal formalities - if operating under an assumed name, you may need to register (usually at the county level.)Partnerships are also easy to create. You need to draft a partnership agreement which is the agreement (basically your own private law) which governs the relationship between the parties - who gets what percentage, who makes the decisions, etc. Again, there are few legal formalities. General partnerships usually do not need to register anywhere except maybe at the county level. Limited partnerships are more like corporations and usually require registration at the state level and the services of a registered agent.. When starting up, a bank may require a personal guaranty since 
your company doesn't yet have a credit history but, as a rule, a shareholder's liability 
 expensive - why should I bother? Personal liability! When a corporation enters into a transaction, it is the corporation and not the 
shareholders who is responsible is limited to the amount invested into the company. Creditors cannot reach beyond the assets of the company in normal circumstances. 

OK, so corporations and LLCs require more work and are a little more expensive - why should I bother? Personal liability! When a corporation enters into a transaction, it is the corporation and not the shareholders who is responsible. When starting up, a bank may require a personal guaranty since your company doesn't yet have a credit history but, as a rule, a shareholder's liability is limited to the amount invested into the company. Creditors cannot reach beyond the assets of the company in normal circumstances. 















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