At least once a week there is a question about how to structure
a small food business. This is a great question. Before answering it, ask yourself the following:
- What will my business liabilities look like?
- What will my tax liabilities look like?
- How flexible are your business needs? Who’s making the decision for the needs?
- What is the likelihood your company will get sued?
- Do you expect to operate at a loss in the first few years?
- Will you invest any profits back into your business?
- Will you crowdfund or make attempts to raise money in the first few years?
- Are you committed to a social mission?
- Do you find answering these questions too difficult?
After reading these questions, do you feel a bit overwhelmed? Deciding how to structure your business takes research, time and effort. Consider seeking professional help. You can contact a small business consulting firm or agency like the SBA. You may contact an accountant (CPA) or tax professional. There are attorneys working with small businesses who can also offer advice.
Before you jump in with both feet, do your own homework. Below is a list of links that offer information about how to structure your new business. If you do use a professional, make a list of questions or topics you are unsure of. Avoid talking to a professional “blind.” You know, without gathering basic information about how to structure a business.
Recommendations from another business owner, about a trustworthy professional are also helpful.
Build your basic knowledge around how to structure your business
- Small Business Administration (SBA)
- Internal Revenue – Business Structure
- Structure Your Business Basics – From Your State (You can locate basic information from your state website. For example: Here’s the state of Texas, North Carolina, and California.)
If you cannot locate the information for your state leave us a comment.