The decision to start your own business can be one of the best you will ever make in your life. Your own business is a great adventure. There are definitely advantages and disadvantages of it. The benefits include control, money, independence and freedom. The downsides to it are uncertainty and risk. In any case the first step you make is personal evaluation. Why are you going to start a business? Are you planning to provide a service or a product? Will it be a full-time or a part-time venture? Will you have employees? The answer to these questions will help you choose a business. Also you will need to evaluate your idea. Who will buy your product or service? Who will be your competitors? Another necessary thing is a business plan. It will help you figure out how much money you will need to start. There are several ways to form your business. It can be a sole proprietorship, a partnership or a corporation. If you intend to create a sole proprietorship it won’t take much time or money. Just get a business license and you are a business. But the downside to a sole proprietorship is significant: you and your business are legally the same thing. Your home, cars, bank accounts, everything is at risk when you are a sole proprietor. There is another problem. If a sole proprietor becomes seriously ill or dies his business perhaps won’t continue and will probably close. One more difficulty with this form of business is that you have no partners to work with. It’s a dangerous way to do business. A partnership is rather attractive. A business partnership is like a marriage. You need to choose a good partner because you will be spending a lot of time together. A partner will give you another pair of hands to do the work. And he will share the financial responsibilities of the business. But it is still a good idea that you “date” first before jump in it. Find a project or two and work together. Will you get along? Will your styles mesh? How will you deal with deadlines? You need to be sure that you work well together, have a good time and have skills that complement one another. Any two or more persons may form a public or private limited company. As soon as people and firms buy shares they will become shareholders and owners of the company. Shareholders will be receiving part of the company’s profit in the 17 form of dividends. The shareholders have limited liability, so if the company goes bankrupt a shareholder will only lose the money they paid for the shares. Unlike a public limited company the purpose of a private limited company is to keep ownership and control within a small group of shareholders. The best thing about forming your business as a corporation is that it will limit your personal liability. So, which is best for you? No matter which form of business you choose, starting your business will certainly be stressful, challenging and enjoyable.

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