Foundational to running a business is choosing a proper business structure. In this video, learn how to force yourself to consider long-term operations by carefully selecting a structure.
- When you build a business, you probably spend…most of your time thinking about…how you're going to bring your idea to light,…and very little around the legal structure…of the business itself.…Deciding on the legal structure of your business…is important because any mistakes you make early on…can have heavy consequences later.…What are the legal structures available for your business…and how do they differ in terms of ease of setup,…tax liability, legal liability, and the ability to grow?…Let's start with the easiest structure to build:…a sole proprietorship or sole trader.…
These are extremely cheap and simple to register.…Usually you go to a local clerk's office,…provincial office, or in some countries…you can do it online.…Once you do this, you should get some paperwork…from the authorities registering your business name.…Sole proprietorships also have a simple tax structure.…In most countries, the profits from sole proprietorships…are included as a part of your personal tax return,…so the tax paperwork is relatively easy to sort out.…
- Explain the advantages and disadvantages of different business and corporate structures.
- Determine cash flow using the concepts of revenue and expenses.
- Demonstrate knowledge of best practice fundamentals for business.
- Explain the importance of a cash reserve.
- Differentiate between the types of insurance and other protections a business should have.