There are about 29 million small businesses in the United States, according to the Small Business Administration, and new ones open every day. Launching and sustaining a successful new venture can be daunting, but there are ways to triumph over common challenges that many startups face. The Pennsylvania Institute of Certified Public Accountants (PICPA) highlights some smart ways to avoid the common errors made by new business owners.
Don’t pick the wrong legal structure
Will your business be a sole proprietorship, limited liability corporation, partnership, S corporation, or corporation? This is an important question. Choosing the wrong legal structure could have negative tax or legal implications for your fledgling company. Identifying the right one for you will depend on a number of factors, including how many owners are involved and the type and nature of the business. Since this is an important decision, be sure to consult your CPA if you have questions on the best choice for you.