Company Setup – What Type of Company Should You Choose?
Company setup is the process of incorporating a business and turning it into a distinct legal entity. It separates it from its owners in terms of finances, liabilities and contractual agreements. This allows you to run the company in a tax-efficient manner and protects personal assets from any claims against it. It also makes the company more attractive to investors, lenders and suppliers because it creates a corporate image and affords financial protection in the event of insolvency.
The type of structure you choose determines many aspects of your business, including how you pay taxes and how you manage employees. Here are some of the main choices to consider:
A limited liability company (LLC) or corporation is the best option for most startups, as it protects owners from any claims against the company. It is quick and simple to set up, though you may want to consult a lawyer before making this choice.
A Comprehensive Guide to Company Setup: Essential Steps for Starting Your Business
If you intend to expand your business internationally, consider registering in the US or Canada, where there are more options for opening bank accounts and establishing work visas. However, if your business plan calls for hiring US-based employees, you will have more income tax issues to deal with.
Regardless of the type of company you register, it’s important to conduct a trademark search and register a DBA name if necessary. These steps ensure you don’t infringe on any other companies’ trademarks or confuse customers. It’s also a good idea to include your business address and bank information in your business settings so they appear on invoices and other documents in Business Central.