Month: August 2020

Illinois businessmen and businesswomen who would like to own their own business have two options: start your own business or buy someone else’s. There is a certain sense of pride that comes along with becoming an entrepreneur, formulating your own business idea, and starting from the ground up. However, people often forget the number of benefits that come along with purchasing a business and becoming its new owner. Before deciding which plan you would like to use, it is important to have the following practical considerations in mind.

1. The Comparative Costs of Starting and Buying

   
   

There is no single price tag for starting or buying a business. The costs can greatly fluctuate depending upon the industry, business plan, timing, and more. Before making a decision one way or the other, consider the costs of each. When starting a business, you will need to spend time and money looking for a suitable location, employees, means of production, advertising, and much more. If you purchase an existing business, many of these details will already be nailed down. While you may still wish to adjust some of these details, you can choose to do so over time when you have adequate funds in place.

2. Immediate Cash Flow

   
   

Purchasing an established business means that existent customers are already in place. You will not have the in-between time spent funding your business with no customers to help cover the

Anyone who is starting a business will need to select a business entity or model with which they will follow. A corporation and limited liability company (LLC) are two different types of business entities that both offer their own benefits. Depending on how you would like ownership, taxation, and management to look for your business, you can select a business entity that reflects these professional goals. You may have an idea of how you want your business to run, but may not be sure which business entity this aligns with. Before deciding upon your business entity, speak with a reputable business attorney for advice on how to proceed with your business.

Business Ownership

If you are beginning your business with a few investors or partners in mind, you should understand how corporations and LLCs differ in this regard. In corporations, the ownership of the business is divided by shares of stock purchased by owners, known as shareholders whereas LLCs’ owners are called “members.” These shareholders can determine how much ownership they would prefer to have by purchasing additional shares to own a larger percentage of the company or selling their shares if they wish to reduce their ownership amount. Corporations are a good option for those who are seeking outside investors.

LLCs do not look at ownership through the same financial lenses. LLCs can have as many owners as they want and their financial contribution does not have to determine their “level” of ownership. Instead, many