If you are planning to start a new business in Georgia, you must figure out how you want to structure your professional venture. The first steps you take as a solo entrepreneur may be different than those you need to complete to form a corporation with a board of directors and shareholders. Understanding the types of business structures that are available may help you determine which one is best for you.
According to the official website of the State of Georgia, there are three popular business structures that the state recognizes. You may form a corporation or a limited liability company. Another option is to operate as a sole proprietor. Each structure offers unique advantages and challenges along with specific requirements for formation and operation.
One of the simplest options for starting a business is to operate as a sole proprietor. If you do not have any employees or co-owners, you may simply choose a business name and begin working. As a sole proprietor, you do not need to disconnect your personal and business finances, and you may report your business income on your personal taxes.
If you do want to separate your personal and business finances, or if you have one or more co-members, you may choose to file an LLC. This process is fairly simple, though it may require more startup fees than operating as a sole proprietor. You may form an LLC without any other members as a way to protect your personal assets from business liability.
A corporation structure may be better for a larger business. This option allows you to secure capital through stocks and set up a board of directors.
This general information on business structures is intended to be educational and should not be taken as legal advice.
