Here is a guide in choosing the right business structure:

Choosing the Right Business Structure

1. A business with a lot of capital.

If you want to open a business that requires a lot of capital and you are the sole owner and financier, then your business should be incorporated or registered as a corporation. 

However, if your business is a small-scale venture, and you are seeking investors, then it’s highly recommended that you register or incorporate your business as a partnership because it is easier to obtain funding from potential investors.

2. When seeking investors.

If you are seeking investors, then your business should be registered as a corporation because these types of businesses have more credibility and more investors would be willing to support.

3. If you want a retail store.

If you want to open a retail store, then your business should be registered as a partnership or sole proprietorship. This is because you won’t need to worry about any paperwork or tax issues. However, if you want to open a chain of retail stores, then it’s highly recommended that you register your business as a corporation.

4. If you want to be a lawyer, doctor, or accountant.

If you want to be a doctor, lawyer, or accountant, then it’s highly recommended that you register your business as a corporation because these are professionals that require licenses from the government.

5. If you have a service-oriented business.

If you have a service-oriented business, registering as a sole proprietorship or partnership will be just fine for your business needs. There are no special requirements for these types of businesses.

6. If you want to open an online business.

Online businesses can also be registered as a sole proprietorship or partnership because there are no special requirements in opening an online business. However, if you want your online store to be credible and gain more trust from potential customers, your business should be registered as a corporation. 

This way you can show that your company has been in operation for at least 1 year and this helps build credibility and trust in the eyes of potential customers and investors. You can also register your online store as an LLC if you are seeking investors but this is optional since there are no special requirements in opening an online business. 

7. If you want to establish a trust fund.

If you want to establish a trust fund, then your business should be registered as a corporation because this is one of the requirements in establishing a trust fund.

Choosing a Business Name

This is perhaps the most important step in starting your business. This is because people will use your business name in identifying your products and services and they will also use your business name in paying you. You have to be careful in choosing your business name. 

Here are some tips in choosing a good business name:

1. It must be unique. 

2. It must not be confusing with other businesses 

3. It must not have any negative connotations 

4. It must not be deceptive 

5. It must not infringe on any trademark that has been registered by another company 

6. It must not be offensive 

7. It should comply with the law 

8. Short names are best 

9. You can use initials as long as it is still unique 

10. The name of your business should be memorable