My First Business

SBostick

Hello all,

i am currently trying to set up my first business as a supplier or sub contractor to begin selling goods to the government. Im kind of stuck at a fork in the road at the moment and need some valid tips from people who have been here before. Right now i am by myself and i need to know whether i should set up a sole propietorship or and LLC when im just starting off. Any help would be monumental.

Maxibillion

Either one works. There are disadvantages and advantages for both. LLC will protect you more but a sole proprietorship is free. If you're on a budget then I would go with a sole proprietorship. But don't let it slow down your progress, take an hour to figure it out and then get it done.

PZagotti

First, great advise about not letting entity structure decisions slow you down.
Outside of the momentum argument the other reason I agree with that is because you can generally change your business to another form down the road if the business picks up and becomes successful.
Now that is the general rule, if you have a lot of personal asset or the work you are going to do could create liabilities that could get you into legal trouble then my answer would change.
So lets say you are an professional that has build up a nice pile of money and maybe just been laid off or quit to start your own business, then the entity issue becomes very important.
On the other hand if you don't have much / there is nothing to protect then it is less important.

Either way look at getting insurance to mitigate risk, (especially if you go sole proprietorship).
Most government agencies require that their vendors have insurance so you will probably need it to register with the purchasing department as a authorized vendor.

Thanks

Eunikeliving

Congrats for your new business

Jeff Marlon

Hi

I would recommend to first go for Sole Proprietorship. As a sole trader and starter you'll be knowing the best that what can be the problems your business may face in future. So you'll learn to deal with it alone. Sole Proprietorship involves least legal formalities which will help you to focus on your business operations.

anushkachhakrabarti

Owning a business is not for the weak in spirit. You need a strong mind and heart to face the day-in and day-out work. In the early days of the dream, it’s easy to be so excited and enamored with the idea of "your" business that you fail to grind out a proper business model.

ankit007

Tap on the connections to take in more.

Step 1: Write a Business Plan.

Step 2: Get Business Assistance and Training.

Step 3: Choose a Business Location.

Step 4: Finance Your Business.

Step 5: Determine the Legal Structure of Your Business.

Step 6: Register a Business Name ("Doing Business As")

YourRetailCoach

To start a business as a supplier or sub-contractor there are disadvantages and advantages for both. To avoid the disadvantages you need to go to the below steps:

• Make a business plan

• Choose a location

• Finance a business

• Give a name to your business.