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Types Of Start Up Businesses (Part 1)

Dec 13, 2007
The only thing that would arise in your my mind to have your own business is how to begin. What are the different start ups for business?

When thinking of the types of start-up businesses , there seems to be a million different things that have to be taken into consideration. Finding money, perfecting a service, product or line, making important connections, and other tasks create a bewildering array of decisions that need to be made.

One such decision that shouldn't be overlooked is the type of organizational structure you'll be using. There are multiple kinds, but all of them are chosen on the basis of taxes, management direction, and matters of legal liability. This is important to businesses start-ups.

Some 'start up small businesses' ideas available in the internet can be an effective tool as you start your own. Please be guided with these because there is a lot of preliminary work to be done once you have decided to begin your own. A multitude of tasks clamor for your attention and it can be easy to find yourself spinning around in circles trying to keep every fire burning.

Don't make the mistake of dealing only with urgent things and failing to do some foundational work as well. Getting your business structure set up in a timely manner will serve you well when it comes to dealing with tax and legal matters. The sooner you get this somewhat tedious step out of the way, the better.

Starting up business is not that easy as you may think of it. There are lot of things that need to be done.

It can be easy to jump into the service aspect of your new business and allow some of the paperwork and legal decisions to fall by the wayside. After all, you are in business to take care of your customers, not because you like to do paperwork. Ultimately though, these initial legal processes are vital to your success. Take the time to get them done. If you don't it could have serious repercussions as you roll into tax preparations and as you prepare to deal with other potential conflicts that exist with your partners.

A sole proprietorship is the most basic organizational structure, and a particularly common one among start-up businesses to boot. In the sole proprietorship structure, the founder of the company takes in all the profits and has all the decision-making power. Needless to say, organizing such a company is also an easy task. Unfortunately, this is where the benefits end.

Any profits you make are taxed as personal income, your company will pay higher taxes, and you take on all legal responsibilities for your businesses' actions, meaning that personal assets are vulnerable to fines and taxes. Still, going it alone can be a good plan for some start-ups.

The partnership is more complex and consists of two or more people pooling skills and assets, sharing responsibilities in running the business. Each partner, however, takes on the same level of legal liability as a sole proprietorship. Furthermore, each partner your start-up brings into the fold will require a written and legal partnership agreement, complete with legal recourse for the partner to leave the business, assigning ownership of a company's assets to that partner, and assigning individual responsibilities to that partner.

These agreements should always be fleshed out beforehand, and control of the company should never be divided in a way that allows for important decisions to become ties when brought before the partners in charge.

A partnership is a slightly more intricate type of business. Obviously, it involves several people working together. This type of business allows people with different skill sets to complement each others strengths and weakness, thus making the business more vibrant and increasing the chances for success.

Of course, where there are partners there is always the possibility for conflict. You will want to make sure that the agreement of the partnership is spelled out clearly ahead of time so that the vested interests of each partner are protected should there ever be a conflict that can't be resolved.
About the Author
Stephen C Campbell (MBA, MSc) is an international business consultant & internet marketer and as published more information on business, niche marketing and market segmentation at
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