Home       Top Rated       Submit Article     Advanced Search     FAQ       Contact Us       Lawyers in India       Law Forum     RSS Feeds     

Register your Copyright Online

We offer copyright registration right from your desktop click here for details.

Latest Articles | Articles 2014 | Articles 2013 | Articles 2012 | Articles 2011 | Articles 2010 | Articles 2009 | Articles 2008 | Articles 2007 | Articles 2006 | Articles 2000-05

Search On:Laws in IndiaLawyers Search

Mutual Consent Divorce in Delhi
We provide fast, cost effective and Hassle free solution.
Contact us at Ph no: 9650499965 (Divorce Law Firm Delhi)
File Caveat in Supreme Court
Contact Ph no: +9650499965

Main Categories
 Accident Law
 Animal Laws
 Aviation Law
 Bangladesh Law
 Banking and Finance laws
 Case Laws
 Civil Laws
 Company Law
 Constitutional Law
 Consumer laws
 Contracts laws
 Criminal law
 Drug laws
 Dubai laws
 Educational laws
 Employment / Labour laws
 Environmental Law
 family law
 Gay laws and Third Gender
 Human Rights laws
 Immigration laws
 Insurance / Accident Claim
 Intellectual Property
 International Law
 Juvenile Laws
 Law - lawyers & legal Profession
 Legal Aid and Lok Adalat
 Legal outsourcing
 Media laws
 Medico legal
 Real estate laws
 Right To Information
 Tax Laws
 Torts Law
 Woman Issues
 Workplace Equality & Non-Discrimination
 Yet Another Category

More Options
 Most read articles
 Most rated articles

Subscribe now and receive free articles and updates instantly.


Published : November 04, 2014 | Author : Pranati Shubha
Category : Company Law | Total Views : 2534 | Rating :

Pranati Shubha


Business structures available for a start up

To start a business, one of the most poignant questions is regarding the structure of the business. These phenomena could be a ticklish one as the structure remains annexed to the business for life and would also decide the fate for it. There are a number of structures that could be taken up for a start up business and also the perils tethered to it.

One of the most celebrated legal structures is sole proprietorship. The expenses and income from the business are included on your personal income tax return. This is one of the most elementary and low-cost options available especially if the business is based on a virgin concept. But there are some frailties attached with this structure like the owner remains on the hook for all the company’s liabilities. So, this kind of structure is best suited for those owners who have paltry number of employees and is a modish one.

An option available for a start up is partnership. There are basically two types of partnerships: general and limited. In general partnership in case of default the creditor can go against any or all of the partners. But in a limited partnership the liability remains only to a general partner with unlimited personal liability and limited partners whose liability is generally limited they have invested in the company. This structure is again relatively low-cost and an easy option. One major risk attached to this structure is general partners can be personally at jeopardy even though some other partner is responsible for dissolution. This structure is generally very common in real estate industry.

A start up can be started as a corporation. A corporation is basically an independent legal entity and it is separate from its owner which means it has a stauncher shield from personal liability. The S-corporation is more conventional whereas C-corporation is for high profile ventures. The corporation is held responsible to a board of directors along with the shareholders. One of the greatest advantages with this structure is that the consolidated debt does not come to its owners and hence the owners do not run the risk of their personal assets. But this structure is expensive and complex with respect to the other two structures. This structure is best suited for manufacturers and restaurants.

Another form of start up which has emerged with time is Limited Liability Company. In this structure the earnings and losses cut through the owners and are included in their personal tax returns. LLC’s provide better liability shield than corporation and is less expensive to set up. But depending upon how the specific entity is taxed one might have to pay self-employment tax on the share of draw. This structure is best suited for the business which is quite naive in the market and is unwary about its growth rate in the initial years.

1 2 3 4 5
Rate this article!     Poor

Most viewed articles in Company Law category
Globalization & its impact on Indian Economy: Developments and Challenges
Winding Up of a Company
Retrenchment under Industrial Dispute Act, 1947
Dissolution of partnership firm
Articles of Association & Alteration of Articles
ADR Mechanism in India
Which employees do not fall under the ambit of Industrial Dispute Act, 1947
Demerger under Company Law
Directors & Their Liabilities
Corporate Personality
Position of a promoter in establishing a Company
Prevention of oppression & mismanagement
Appointment, Disqualification And Liabilities Of Directors of A Company: A Legal Perspective
Remuneration of Directors
Position of Directors In A Company
Minority Rights on Oppression and Mismanagement Under Companies Act, 1956 And Companies Bill, 2011
Most recent articles in Company Law category
How to convert One Person Company to Private Limited Company
Risk Management and Corporate Management
Procedure for declaration and payment of interim dividend by the board of directors
Holding first Meeting of Board of Directors of a Company Under Companies Act 2013
One person company
Payment of compensation for loss of office of MD or WTD or Manager
Appointment of a director other than a retiring director in the General Meeting
Principle of Lifting the Corporate Veil
Banking Ombudsman Scheme 2006
Articles of Association
Distinction between Companies Act 1956 and Companies Act 2013
Role of Proxy Advisory Firms In Corporate Governance
Need For Corporate Social Responsibility
Fast Track mergers
Corporate Social Responsibility
Winding up of a Private Limited Company under Companies Act, 2013

Article Comments

Posted by SIBAANANDA JENA on October 21, 2015
Dear Mam,
I want to establise a service provider company, so i request you to suggest me.

Sibaananda jena

Please login or register a new free account.

Random Pick
The article deals with the various aspects of Article 21 of the Indian Constitution, tracing its judicial history in the light of LGBT rights.

» Total Articles
» Total Authors
» Total Views
» Total categories

Law Forum

Legal Articles

Lawyers in India- Click on a link below for legal Services

lawyers in Chennai
lawyers in Bangalore
lawyers in Hyderabad
lawyers in Cochin
lawyers in Pondicherry
lawyers in Guwahati
lawyers in Nashik

lawyers in Jaipur
lawyers in New Delhi
lawyers in Dimapur
lawyers in Agra
Noida lawyers
lawyers in Siliguri

For Mutual consent Divorce in Delhi

Ph no: 9650499965
For online Copyright Registration

Ph no: 9891244487
Law Articles

lawyers in Delhi
lawyers in Chandigarh
lawyers in Allahabad
lawyers in Lucknow
lawyers in Jodhpur
Faridabad lawyers

lawyers in Mumbai
lawyers in Pune
lawyers in Nagpur
lawyers in Ahmedabad
lawyers in Surat
Ghaziabad lawyers

lawyers in Kolkata
lawyers in Janjgir
lawyers in Rajkot
lawyers in Indore
lawyers in Ludhiana
Gurgaon lawyers


India's Most Trusted Online law library
Legal Services India is Copyrighted under the Registrar of Copyright Act ( Govt of India) 2000-2017
 ISBN No: 978-81-928510-1-3