Abstract
When it comes to setting up a business, it is important to gain a thorough understanding of what needs to be done in order to guarantee the success of the endeavor. Primarily, business owners must be able to identify the business structure that is more appropriate for the company that they intend to put up, including information on the type of workers that they should hire and what are the implications of hiring employees versus independent contractors. It should also include understanding issues that could arise as businesses interact with the public, other corporations, and the national government. Business owners must also have a clear understanding of the role of business law and its place in the legal system to allow all other companies an equal opportunity to succeed. It would also help to understand facts about the European Union and its place in the world market. Knowing this information will help business owners come up with a sound decision as to the type of business venture that is apt for their needs and rules of business if they intend to expand their business overseas.
Nowadays, putting up a business is a better option than finding employment in someone else’s company. There are many business options and ideas that people can choose from, which could be the start of something big and better for the individual. However, it is important to note that not all who go into business succeed. This can be attributed to the person’s, or group or persons’, lack of understanding pertaining to the type of business to structure to follow. If one wants to capitalize on the potentials of a business, understanding the business and choosing the appropriate business structure can help guarantee financial and operational success.
Selecting the appropriate business entity is the first step in putting up a business. This will determine how the person or the corporation will be taxed, what its legal standing is, and how else can the business grow in the future. There are two known classes of business structures, which are incorporated and unincorporated. Incorporated businesses are corporations, which mean the business is treated separately from the business owner, and thus, have natural rights. On the other hand, an unincorporated business is one and the same as the business owner. It is sometimes also referred to as sole proprietorship. What distinguishes one from the other is how owners run the daily business and activities.
