L.L.C. vs INC. WHY DOES IT MATTER?

10 Topics To Consider When Forming A Start-Up  (1 of 10) No one would start a business expecting it to fail. Yet it is widely known that approximately seven out of ten new businesses fail within their first three years of operation. There are a multitude of reasons why new businesses fail. That said, many if not most new business failures could be avoided with a little more planning and due diligence on the part of the owners and mangers prior to start-up. This article will address one of ten key issues every small business owner and manger, as well as anyone contemplating investing in a new business, should be aware of when developing a business plan and starting a business. Below is the first of ten postings addressing these key issues. Please note that this article was written based on Texas law.   L.L.C. vs INC. WHY DOES IT MATTER? Every business owner must choose how to operate their business.  There are a variety of entity choices and each has its benefits and limitations. A summary of the most common entity choices and the significant benefits and drawbacks of each is:   I. Individually / Sole Proprietorship The most basic structure […]