http://www.stclairgreschler.com
In this video, I'm going to share 5 reasons why entrepreneurs and small business owners should form a business entity.
The problem is that many new companies are started as sole proprietorships. Legally, this means that the business owner and the business aren't separate.
They share assets, debts and legal liabilities. If your company gets sued or owes a lot of money, YOU are responsible for that money. You could potentially lose EVERYTHING- your house, car, savings and more.
The solution is to form a business entity.
Here are the top 5 reasons to act now and form one as soon as possible:
1. Keep Your Personal Assets Separate
Forming an entity keeps you from losing your money or possessions if your company goes into debt. Creditors can't touch your personal assets like your home or car.
2. Business Asset Protection
Putting business assets in an entity can protect them from being tied up in a lawsuit if your company gets sued. This is especially true for businesses with multiple owners. It may seem rare, but is far more common than you'd imagine!
3. Seeking Investment Down the Road
Investors only want to invest money in a business where they can get a share of profits or an interest they can sell down the road. This is extremely complicated to do with sole proprietorships, so investors avoid them. Having an entity makes securing investment much easier.
4. Incentivizing Your Employees
Sole proprietorships can't offer employee stock purchase plans or other incentives to motivate them beyond their salary. By creating an entity, you can offer employee perks that will motivate them to work harder to help your business grow and succeed.
5. Develop Business Credit History
With an entity, the business itself can establish credit once it has a history of cash flow. This keeps you as the owner from having to personally guarantee loans.
This protects your personal assets in case you can't pay back the loan.
So create your business entity today! It's usually much quicker and easier than you'd expect. Find a business attorney in your state who can help you select the business entity that's right for you, and help with forms, filing fees and more. Don't delay- start protecting your assets and securing the future of your business today.
If you're a Colorado business owner and need help forming an entity, contact the law firm of St. Clair & Greschler at www.stclairgreschler.com or call 303-647-9475. They have years of experience forming business entities, and would be happy to help you through the process.
Colorado Business Law: 5 Reasons to Form a Business Entity
1. 5 Reasons to Form a
Business Entity
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www.stclairgreschler.co
m
2. The Problem
S Many new companies are started as sole proprietorships
S Legally, the business owner and the business aren't
separate
S They share assets, debts and legal liabilities
S If your company gets sued or owes a lot of money, YOU
are responsible
S You could potentially lose EVERYTHING- your house,
car, savings and more
www.stclairgreschler.com
4. The Top 5 Reasons to Act
Now
S
www.stclairgreschler.com
5. 1. Keep Your Personal Assets Separate
S Keep from losing your money or possessions
if your company goes into debt
S Creditors can't touch your personal assets
like home or car
www.stclairgreschler.com
6. 2. Business Asset Protection
S Putting business assets in an entity can protect them
from being tied up in a lawsuit if your company gets
sued
S Especially true for businesses with multiple owners
S It may seem rare, but is far more common than
you’d imagine!
www.stclairgreschler.com
7. 3. Seeking Investment Down the
Road
S Investors only want to invest money in a business where
they can get a share of profits or an interest they can sell
down the road
S This is extremely complicated to do with sole
proprietorships, so investors avoid them
S Having an entity makes securing investment much easier
www.stclairgreschler.com
8. 4. Incentivize Your Employees
S Sole proprietorships can’t offer employee stock
purchase plans or other incentives to motivate them
beyond their salary
S By creating an entity, you can offer employee perks
that will motivate them to work harder to help your
business grow and succeed
www.stclairgreschler.com
9. 5. Develop Credit History
S With an entity, the business itself can establish credit
once it has a history of cash flow
S This keeps you as the owner from having to personally
guarantee loans
S Protects your personal assets in case you can’t pay back
the loan
www.stclairgreschler.com
10. Create Your Business Entity Today!
S It’s usually much quicker and easier than you’d
expect
S Find a business attorney in your state who can help
you select the business entity that’s right for you,
and help with forms, filing fees and more
S Don’t delay- start protecting your assets and
securing the future of your business today
www.stclairgreschler.com
11. Colorado business owners, contact:
St. Clair & Greschler
www.stclairgreschler.com
303-647-9475
S
www.stclairgreschler.com
