What Is a Small Business and Why You Need to Get the Structure Right

The official statistics of a small business is any business that employs 500 people or less with an annual income of less than 1 million dollars. However, the acknowledged perception of most small businesses, are those family owned and operated businesses employing family members and one or two employees. These small businesses are the “Mum and Dad” businesses that support many of our families today.
The financial structure of these businesses varies and is not dependent on income.
However, there are many tax advantages by structuring a small Business That Can Make You A Billionaire as a company or if in the US as an incorporated business. The big advantage to having a company or an incorporated business aside from the tax advantages is that the company or incorporated business becomes an entity in its own right and if it goes ‘belly up’ it is the company that fails and goes bankrupt and not the people involved in it. It is ideal protection for entrepreneurs and is a way to protect business owners.
The protection for business owners in this type of small business structure is that the assets in the company or incorporated business belong to the company or incorporation and it is only those that can be claimed by creditors if the company fails.
If you were to trade as a small Trade India News and used your house as collateral to get a loan for the business, then if the business fails, creditors can take your house and all your other assets to pay off your debts. This can be devastating.
Most company’s or incorporation start life as a small business. These fledgling businesses are known as ‘start-ups’ and once the business starts to make some money, they are then restructured into a company or incorporation with all the assets registered in the company name. Once these assets are in the company name then they belong to the company and are no longer owned by the company owner as a personal asset. The company can obviously give the right to use these assets to the company owner but the company owner can no longer dispose of them without the consent of the other company directors of the company.
Many company’s or incorporation are family owned businesses so getting consent to use company property is not usually an issue unless there are company directors involved in a dispute.
Unfortunately, many families do break-up over financial disputes and if you are going to set-up a company or incorporation, when you appoint the company directors and give them responsibilities you will need to be sure that they are suitable occupants for the positions. There is more to being a company director than just having a fancy title.
So what today represents the majority of small businesses?
A small business is structured in a way that is the most suitable for the purpose and intent for the industry in which the business operates and is staffed by one or more people and supports one or more families.

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