Starting a business is an exciting adventure, but can quickly become stressful when you begin to learn about all the different components of the start-up process that must be considered. Especially for new small business owners with limited experience on the legal side of the process, the task list associated with starting a business in Alabama can seem overwhelming. Between tax registrations, obtaining business licenses, and investigating the need for local permits and how to obtain them, the process can be daunting. After the initial start-up process, the task list continues with tax withholding, hiring, documentation, and insurance processes. One of the first steps, however, is choosing which type of business entity you wish to establish.
Starting Out Small
There are a number of different business entity types available to choose from. Each one has its own potential advantages and disadvantages, and what is right for one type of business may not be right for another. The sole proprietorship is the simplest type of business entity. With this type of business, one person owns and manages the business. They alone are solely responsible for all of the transactions, including tax payments, as well as the debts and liabilities of the business. The owner is free to sell the business whenever they want to or they could pass it along to an heir. Paperwork and formalities are not as extensive for a sole proprietorship as with other types of business entities, but sole proprietors do need to comply with all licensing and local permit issues in the locality of the business. One of the more attractive advantages of a sole proprietorship is that they are the easiest and fastest type of business entities to start up.
Making A Name For Yourself
Some sole proprietors just use their own name for their business, but others may want to conduct their business under a fictitious name or ‘doing business as’ – commonly referred to as ‘DBA.’ In Alabama, if you want to use anything other than your own personal name for your business, you must register for a trade name. It is important to note, however, that even if a sole proprietor chooses to use another name for the business other than their own, the structure itself is not changed and all of the responsibilities and liabilities still remain with the business owner.
Starting Out Right – Contact Cloud Willis & Ellis, LLC For All Your Business Attorney Needs
Whether you are just starting out with a new business or you already have an established company, you will likely have a need for legal work at some point. Particularly when starting a new business, you want to make sure you get things started off on the right foot. The office of Cloud Willis & Ellis, LLC is the place to turn for professional legal guidance and representation. Our experienced attorneys have assisted countless Alabama businesses of all sizes with their legal issues of all types. Contact the office of Cloud Willis & Ellis, LLC today to schedule a time to meet with our legal professionals and learn how we can help your business with all of its legal needs.