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As an attorney and small business owner, I meet with lots of people who want to start their new business, but aren't sure where to begin. At first, all of the obstacles that must be overcome to get from point "A" to point "B" seem insurmountable. And that's just to get your business started!

This article covers the basics of choosing between a Sole Proprietorship, a Limited Liability Company, and a Corporation. It also covers several other steps in establishing the existence of your company. It is followed by several web site references where you can get more detailed information. While I am a practicing attorney, I feel like most people can accomplish many of these steps on their own. Hopefully, I can help you save some money on your way to becoming an entrepreneur. Good luck!

Caveat: I am licensed to practice law in the State of Ohio. Laws change and the law of your state may be different. Use this discussion as a starting point, and always seek specific legal assistance, should you be uncertain about your rights or obligations.

Here are some quick, solid tips to consider, and, hopefully, guide you on your path. Remember, take one step at a time. Don't think about accomplishing everything at once; you can't. But, as you check things off your list, you'll see that the obstacles begin to yield before you.

1) Do you want to be a legal entity? You need to decide whether you want to start your business as a sole proprietor or form a legal entity. A sole proprietor is simply the individual who owns the business. That person reaps all the rewards of the business and shoulders all the obligations and risks.

It used to be that being a sole proprietor had tax benefits, but that advantage has been eliminated in mos states, if not all, by the creation of the limited liability company. Still, for small "mom and pop" businesses or hobby businesses, a sole proprietorship might be the easiest route. The advantages now are that there is reduced cost (as you don't need to file any paperwork with Secretary of State) and paperwork requirements. The disadvantage is that all of your personal assets are at stake should your business become indebted. Your personal assets are also at stake if you do or fail to do something in the course of operating your business that creates legal liability. Since there is no legal separation between you and your business, all of you assets are at risk. This is why many business owners choose some form of legal entity to protect them. In fact, some

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