When starting a business, it is unlikely that individuals will seek immediate success. Certainly, small successes can be achieved early on, but it typically takes a considerable amount of time for a company to thrive and grow into a powerhouse business. As a result, Florida residents who are interested in starting their own consulting companies may need to utilize a smaller business entity during business formation.
Deciding on the right type of business structure is an important step. Though acting as a consultant can prove lucrative, most individuals start out small. Therefore, it may be wise to consider creating a sole proprietorship or a limited liability company. These entities are similar, but an LLC allows business owners to have less personal liability than sole proprietorships.
Of course, parties could also consider an S corporation or a C corporation for their business entities. However, incorporating right away typically does not suit small businesses. Corporations more commonly suit businesses that are relatively large and have several employees, shareholders and possibly even a board of directors. It may prove wiser to choose a different structure and potentially incorporate later on.
Business formation involves numerous decisions, and finding the right business structure will likely go beyond considering these four options. Florida individuals looking to start their own consulting firms may want to ensure that they have detailed information on the structure types that may best suit the needs of their future companies. Consulting with experienced attorneys could allow interested parties to better understand their options and the various implications that come with each.