As a business owner, you’re going to have to decide when will be the right time to step out of the family business and how you’ll do it. There are many estate planning tools you can use to transfer your business. Selecting the right one will depend on whether you plan to retire from the business or keep it until you die.
Now that you’ve decided to start a new business or buy an existing one, you need to consider the form of business entity that’s appropriate for you. Basically, three separate categories of entities exist: partnerships, corporations, and limited liability companies. Each category has its own advantages, disadvantages, and special rules. It’s also possible to operate your business as a sole proprietorship without organizing as a separate business entity.