* His vision of the size and nature of your business.
* The level of control you want to have.
* The level of “structure” with which you are willing to deal.

* The company’s vulnerability to lawsuits.
* The tax implications (tax) of the different forms of ownership of the company.
* The gains (or losses) early in the company.
* If you need or not to reinvest their profits in your business.
* The need for your business you can pay a salary.

Sole Owner
The vast majority of small businesses start with a single owner. These companies are in the hands of one person, who is usually responsible for daily operations to function. Sole proprietors own all the company’s values and profits generated by it. They also assume full responsibility for any liabilities or debts. In the eyes of the law and the public, you and your business are the same.

Advantages of being a sole proprietor
* This is the most simple and cheap to own and organize a business.
* Sole proprietors have full control, within the parameters laid down by law, and can make decisions that suit them.
* Business owners have all the revenue generated by your business, either to save or for reinvestment.
* Earnings from the business flow directly into the personal tax return of the owner.
* If so desired, it is very easy to dissolve or wind up the business.

Disadvantages as a sole proprietor
* Sole proprietors are responsible for covering all their liabilities and have the legal obligation to pay all debts incurred by your company. Threatens the values of both the company and the personal.
* Can be at a disadvantage in raising funds and often limited to using their personal savings or individual loans.
* You can have problems hiring capable or motivated by the opportunity to own part of the business.
* Some of the benefits for their employees, insurance premiums as medical expenses are not directly deductible from business income (only partially deductible as an adjustment to income).

Now you want to start your own business. Are you thinking of risking your personal credit that it took you years to build? If you are, think about it very carefully. Are you 100% sure that your business will immediately become profitable? Are you also willing to risk your home, your car, and your future on this business? Some business owners will rely on a parents personal credit to finance their business. Are you willing to risk your parents credit, perhaps even their home?

Many business owners do risk everything by using their personal credit to finance their business. Perhaps they don’t know any other way. Business credit is not something many business owners are familiar with. Building business credit can be a very long, hard process, and it is very easy to make costly mistakes.

Trent Lee, co-founder of Corporate Credit Concepts, can explain exactly how your business can build business credit without you, the owner, risking your own personal credit rating. Business credit often has lower interest rates than personal credit, saving your business money. You will also sleep a lot better at night knowing that your personal assets are not at risk.