While determining which legal entity is best for your company can get complicated, it’s important to protect your business’s assets. Attorney and CPA Mark Kohler recommends thinking of it in two ways: short term -- such as selling a product or service -- and long term -- including buying property and making investments. For short term ventures, Kohler suggests starting with a sole proprietorship. For longer ventures, he says you’d most likely want to go with a limited liability company (LLC).
Mark J. Kohler, a certified public accountant in Irvine, Calif., is a partner in the accounting firm Kohler & Eyre, and the law firm Kyler, Kohler, Ostermiller, & Sorensen LLP, specializing in business, estate and tax. He is the author of What Your CPA Isn't Telling You from Entrepreneur Press.