Questions

I have an online business and expanding. I also plan to buy a medical practice. I need to set up a company and need help on all these issues.

First, clarify your goals that you want to achieve with your business, because these will help you to decide on the best company type. Here are some of the questions and parameters we usually assess when creating a venture:
1. How big the business will grow in terms of revenue, nr of employees, locations etc?
2. Now or in the future do we plan to raise capital or involve additional shareholders?
3. Do we plan to create an Employee Stock Option Plan?
4. Are there any legal, regulatory requirements that influence the company type we can chose? (e.g. for medical practice)
5. From an accounting, tax perspective, specific to our business model and projections, which company type would allow us to minimize taxes?

Some company types are just easier to handle. Also, if raising venture capital, then there are pretty good best practices already, so no need to reinvent the wheel.

Either way, apart from doing this self-assessment, I'd recommend finding a good and affordable lawyer and accountant before incorporation - ones who have a good track record in the state/country where the company will be registered. And definitely get their input too.


Answered 3 years ago

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