More than 500,000 businesses are started in the United States each month, according to Forbes. Of those with employees, about 70 percent of new businesses survive at least two years. Operating a successful business requires commitment and a breadth of skills. In addition to industry-specific knowledge, business owners must be familiar with—or learn about—an array of general practices to succeed.

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Before an entity gets off the ground, prospective owners often create a business plan in order to secure financing, whether from a bank or investors. Many businesses, especially technology startups, operate with the goal of being acquired or merging with another business. Others, such as investment firms or manufacturers, may be extremely concerned about asset protection. 

As a company grows, legal compliance becomes increasingly important. Complying with tax laws and employment laws are essential for any U.S. business. At some point, all businesses encounter difficulty, which may involve insurance claims or the need for litigation. Even when a business faces dissolution, however, its owners must ensure that it is wound up properly.

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Business Formation

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Starting your own business involves making several decisions at the outset, with one of the most important ones being which corporate form you will choose. For individuals who plan to run a small business on their own, it may make sense to operate as a sole proprietorship. Partnerships and limited partnerships are options when multiple stakeholders are involved, as are limited liability companies (LLCs), which provide added protection against owner liability. Some business owners are best served by forming a corporation, which is generally a completely separate entity from the individual owners in terms of liability and taxes. Regardless of the corporate form that is the best fit for you, there are other important considerations that you will need to take into account when starting a business, such as where your business will be based, and what kinds of licenses, permits, and insurance you will need in order to operate.

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