Lee R. Schroeder is an Ohio licensed attorney at Schroeder Law LLC in Putnam County. He limits his practice to business, real estate, estate planning and agriculture issues in northwest Ohio. He can be reached at [email protected] or at 419-659-2058. This article is not intended to serve as legal advice, and specific advice should be sought from the licensed attorney of your choice based upon the specific facts and circumstances that you face.
Different business structures exist to help facilitate success among participating individuals while protecting from risk.
Corporations and partnerships have generally been regarded as the two most frequently used business arrangements. The law also allows for LLCs, which combine the liability protection of a corporation with the informality of partnerships. Participants must analyze their expectations and personal similarities and differences when determining the proper business structure.
Individual people in business seldom have all the components to start or maintain a business. For example, a certain person may have a business idea or patent, relationships with many potential buyers for an existing product or financial reserves sufficient to support a growing company. However, individual people alone seldom possess all those necessary components to create or maintain a business. Thus, one person will frequently join with one or more other people who have what the first person does not have. Then, different people bringing different components can complement each other’s strengths and weaknesses.
A classic case of a joint venture that combined strengths of different people was Christopher Columbus’s first trip to America. Columbus had an idea and experience. The royalty of Spain had money to finance the trip.
Read more about choosing the best business entity in Lee’s article in the Lima News, “Legal-Ease: Analyzing risks and taxes for best business entity.”
Source: LimaOhio.com, “Legal-Ease: Analyzing risks and taxes for best business entity” by Lee R. Schroeder, December 3, 2016