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5 Common Startup Mistakes To Avoid
1. Selecting the wrong business structure How did you choose your business structure? Did you select a sole proprietorship because it was the easiest? Perhaps you signed up for the lengthy process of forming a C Corp because it seemed to be the standard? Choosing the wrong business structure can present unnecessary challenges and risks in the future. For example, in the case of a sole proprietorship, you are your business and you are also personally liable for all debt incurred, including egregious lawsuits . If something goes wrong, your personal assets are at risk. Meanwhile, if you plan to follow the traditional route of investment to an ultimate sale or IPO a C corporation can be suitable. However, a C Corp is also complicated and costly to set up and maintain, and not ideal for a local mom and pop shop. You can get the same benefits from a limited liability corporation (LLC) for less effort and less money. Before you ...
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