Lesson 2: The Law

Every industry carries with it its own set of rules, laws, and obligations that you are responsibility for knowing, understanding, and abiding. This lesson deals with something every business must consider – what legal structure to operate under.

Legal Structure

There are two major issues to consider when selecting a legal structure for your company.

  1. What legal protections can a structure provide you?
  2. What are the tax implications of a legal structure?

There exists an entire field of law dedicated to the issues above – corporate law. Within that field there are many sub-fields. For the purposes of this lesson, we’re going to look at two of the most common legal structures that small businesses, startups, and early entrepreneurs select.

  • Sole Proprietorships
  • LLCs or S corps

LLC vs Sole Proprietorship

Read the following article at LegalZoom.com to examine two of the most popular legal structures for small businesses:

LegalLees

Franchise Opportunities

If you’d like to own your own business, but don’t want to assume the risk of starting from scratch, you might find that a franchise makes a lot of sense. Check out the website below to search for franchise opportunities:

As you search, identify the following:

  • What sort of business is your selected franchise opportunity?
  • What is the minimum investment required?
  • What are the benefits of this type of franchise?