Lesson Objective:
In this lesson you’ll learn about different types of business structures including sole proprietorship, partnerships, limited liability companies (LLC) and corporations.
Reading Assignment:
Two reading assignments today. First, click here to download this article on sole proprietorships. Next, read chapter 6 to the conclusion of Claude Whitacre’s book, Sales Prospecting.
Video Lesson:
First watch this video (10:10) from a course sold at lynda.com. This is a good introduction to the various types of business structures. Note that he calls LLC’s “limited liability corporations” when they are called “limited liability companies” by most states.
In most cases you’ll begin your first business as a sole proprietorship. Your goal is to learn about the business of business by applying what you learn in this course. Later you’ll launch a web-based business. In both cases you’ll want to reduce personal risk by avoiding activities that would require the limited liability protection of a corporation or LLC. I explain why in today’s lecture.
However, if you are starting a business with obvious potential risks, i.e. backyard rock climbing, you should probably form a LLC with a parent to shield your family’s personal assets from business risks. When in doubt speak to an attorney who is familiar with the laws of your state or country.
Now you should watch today’s lesson. (6:49)