BUSINESS SELECTION AND FORMATION

After deciding to start a business, the first step in forming a business entity is selecting the proper entity type.  There are many entity choices including sole proprietorship, corporation, partnership, limited partnership, limited liability company, and others.  Understanding the reasons for selecting (or not selecting) a type of business structure can be critical to the success of the business.

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Once the appropriate entity type is selected, it will be time to form the entity.  This usually involves filing paperwork with the Secretary of State in the state where the business is located and operating.  In addition, internal documents that govern the management and operation of the business may be needed.  This is particularly true in situations involving more than one owner.

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