Georgia Business Entity Search
Business Entities You Should Know Before Starting a Business in Georgia
By definition, a business entity is an organization formed by an individual or a group of individuals for business. It is advisable to make a wise choice of the structure of a company before starting a business. The business entity is the one that will determine the risk you can be exposed to. The following are business Entities which are in Georgia; Limited Liability Company (LLC), Sole Proprietorship, and general partnership.
This guide will take you through the above selected Georgia’s top-ranking business entities. It’ll show you the main cons and pros of the entities too. By the end of the article, you’ll be able to make a free decision on your entity type
Limited Liability Company (LLC)
This legal entity comprises of all positive attributes of other business entities. LLC applies “paperless office” technological advancement completely. LLC members enjoy its Liability protection. It’s up to LLC members to choose his/her taxation best way, either to be taxed as a partnership or as a corporation. Creditors can’t access their clients direct. However, creating LLC requires you to have a generous money source else it’s too expensive. However, we have got a cheaper option, let’s check about it.
Do you have a business? Who is the person who runs it? If it’s you or you and your wife then you’re automatically a sole proprietor. To register sole proprietorship with the state you need licenses. However, this remains to be the number one option for its low costs to start up. The business doesn’t have to be registered to the state to start. That’s an added advantage to those who make this their choice. The main drawback of this entity is that the owner has full responsibility for the business assets and liabilities.
This entity is similar to a sole-proprietorship only that it has at least two owners. It can be further subdivided into two; general partnership (GP) and Limited partnership (LPs). The owners share both profits and losses. As I’ve said it’s similar to a sole-proprietorship, this business entity has got no need to be registered with the state for a startup. Many people opt for this business due to its fewer formalities b4 starting up and also its little start-up capital requirements. However, when it comes to risk covering, this entity is totally risky. The owners remain responsible for any debt and liability. Sometimes, a fault may occur as a result of one of the partner’s negligence.
After going through the above three entities, each entity’s characteristics, pros, and cons have clearly shown you which the best entity is to start with. One will choose Limited Liability Company (LLC), another will prefer sole proprietorship while others will run for a general partnership. The critical decision is mandatory here since the choice you make has implications on your business financials and risks.
You’ll require paying tax as per your Georgia Business Entity Search. Finally, there cannot be the best-suggested entity for any small business. It’s up to the owner(s) to determine which suits him/her business.