Thinking of risking a dip in the entrepreneurial waters? This may just be the right time. According to a recent economic survey by The Entrepreneurs Board, small entrepreneurs are more likely to pull the country out of recession when compared to government measures and aid packages.
According to the survey, more than 38% of respondents were seriously considering a company registration in the near future with 45% of those considering company formation citing the thrill of the experience as the main reason!
So, if you are thinking of a company registration(s), here are some important things to consider.
The first step is to break bigger decisions into smaller ones. A decision tree is the most helpful tool. Here are some questions you will come across on the path to company registration:
- Should it be an LLC or sole proprietorship or something else?
- Where exactly should the company be?
- What is the procedure involved?
- What should the name of the company be?
Many experts recommend LLCs simply because they are less complicated. There is less paperwork, more tax benefits and more protection for the owner of the company. LLC is also considered to be the best option in case you want to sell your business at a later date. Most big companies are interested in buying only if you are ready for an asset sale, which is easiest if you are an LLC. But, there are other constraints that need to be considered before company registrations. For instance, venture capitalists are better off forming an Inc.
Company registration, even in the case of an LLC, is a daunting task as it involves a lot of paperwork, following regulations, getting permits and submitting everything in the right place at the right time. Obviously, company registration, whether in the US, UK or elsewhere is an overwhelming task. In most cases, seeking professional help at the time of company registration is recommended. Even those who have been through the company formation process a number of times go to the experts just so the process is streamlined and works with clockwork precision.
As more and more entrepreneurs experience the itch to take up and run businesses, the road ahead has been made easier and as smooth as possible by new legislation. Business formation experts have made it possible to complete the complicated procedure of company formation in just a few steps.
It is true that company formation is often considered boring and complicated. However, it is crucial that entrepreneurs try and understand the process as much as possible so they can avoid the mess that could follow if wrong decisions are taken, even if they are employing a business agent or other experts to take them through the business formation phase.