Dear John,
Thank you for choosing ABC Consulting as your financial business development expert. I enjoyed reading your business plan and will be happy to provide you with the advice requested to start forming your business.
I have taken the liberty of viewing your LinkedIn profile and I see you have a long history of start-ups and acquisitions. Congratulations! As you are well aware, starting a business can be both fun and intimidating. The first thing we need to discuss is your options for investors as partners and venture capitalists. After a brief review of your portfolio, I believe you have a couple of strong options. Before moving forward, here is a list of basics to consider as we move forward.
• Location
• Name of the business
• Community support (goes with name)
• Register your fictitious name (DBA)
• Obtain all permits needed to operate
Next we need to look at the “type” of business model you are going to establish. With the business plan presented, I believe we should look at either a sole proprietorship or a Limited Liability Company (LLC). First option is to go forward with one partner as an LLC. The second option is go it alone, as a sole proprietorship. It is my firm belief that with your extensive background and business sense, you should take this project on with one investor and form an LLC. As with each model, there are advantages and disadvantages, but, both types of strategies fit your business model well. With an LLC, here are a few points to consider:
• Many business owners choose the LLC option because of the level of liability protection for personal assets, and business debt
• Owners assets are protected from loss
• No ownership restrictions
• Life limited company (30 years)
• The LLC is not a corporation and requires at least two members
Here are a few thoughts to consider with a Sole Proprietorship;
• Easy