Starting a Business: Legal FAQs

Q: If I operate my business under my personal name, is it necessary to register it someplace?

A: In most states you do not need to register your own name if you are using it as your business name.

Q: What are the advantages of forming a limited liability company?

A: The LLC is generally considered advantageous for small businesses because it combines the limited personal liability feature of a corporation with the tax advantage of a partnership or sole proprietorship.

Q: What should I know about forming a corporation?

A: This is a complex business structure with more start-up costs than many other forms. A corporation is a legal entity separate from its owners, who own shares of stock in the company.

Q: What is the advantage of forming an "S" Corporation?

A: The structure of an "S" Corporation is identical to the "C" Corporation in many ways, but offers avoidance of double taxation.

Source: Reuters, Small Business Resource Centre