Business Facts

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Choosing a name for your new business should be your first step. This is an important step because a well-chosen name can help you generate more sales for your business. It is important to choose a business name that accurately represents your business and gives an impression of trust and confidence.

For example, would you feel comfortable ordering a financial guide from a business called "Wallace Book Company" or "Wallace Financials"? Simply pick a name that you would feel comfortable ordering a publication from. If the business name is other than your own name, you will need to file for a Fictitious Business Name (also known as DBA) registration. Choosing a form of legal entity or structure for your business should be your next step. You can organize your business in one of three ways.

A proprietorship is the least expensive to form and usually requires nothing more than a "DBA" (doing business as) name and possibly a local business license.
This type of ownership allows you to have the maximum control over the operations of the business, but also creates maximum liability. You will be personally liable for all debts incurred by your business. Since proprietorship is the least expensive and easiest to form, it is recommended that anyone going into the services and information marketing business for the first time. You will make all the final decisions and be responsible for all the aspects of your business. This is a popular choice for a one-man/woman operation.

If you need a business partner, either for financial or expertise reasons, the best way to outline your business relationship, from a legal standpoint, is to form your business as a partnership.

A corporation is the most formal form of business that one may consider. You can have a corporation whether you are the sole owner of the business or you have partners. This form of ownership is more expensive, but offers the least liability. You must consider this form of business after your business has successfully begun and reached consistent profitability. It is also advisable to consider forming a corporation before applying for expansion capital through a bank or other lending institution. The services of an attorney are recommended when forming a corporation. The attorney can assist you in filling out the proper forms and submitting them to the correct governmental agencies.