Are you hoping to give your business to your children? Are you the adult son or daughter who is hoping to take over the family business?
When you're starting a business, it's easy to get overwhelmed. There's a lot to do -- not the least of which is deciding what type of business entity you want to use. The decision should be made early not only because it may be difficult to change later, but because it will also have significant financial and legal consequences.
There are several aspects to starting a business in Ohio, whether you plan to be a sole proprietor or to launch a start-up designed to grow into a large company. Part of the initial process is choosing how to structure your business. The legal entity you choose for your business may directly impact your financial resources, tax liability and daily management.
In 2016, CNN reported that minority-led and women-owned businesses had a high likelihood of obtaining business funding in Ohio. Cleveland-based nonprofit JumpStart invested only in tech firms within this demographic for three years. They planned to do this for 20 firms and focused their efforts on small companies with fewer than six employees. They pledged to ensure each firm received half a million dollars in funding. The aim is to create greater diversity in the technology industry.
When starting a business in Ohio, there are a few legal requirements entrepreneurs must consider before they can set up shop. One of the main things businessowners need to decide is the business type they want to operate under. Most entrepreneurs choose an LLC. However, this comes with a wealth of other options. This includes whether or not they want to elect to be treated as a corporation, and what kind of corporation that would be. Why then do so many people choose S-corps?
Business mergers in Ohio may not be as high-profile as those involving Fortune 500 companies in New York and California. Even so, without a clear strategy and careful planning, companies may set themselves up for a disadvantage when completing mergers. This is especially the case for smaller businesses when merging with larger and more powerful companies.
Believe it or not, it is possible to start a business in Ohio with little to no capital. However, in order to do so, you may need to scale back some of your grand ambitions for your business. There is nothing wrong with starting small if you can build momentum when the time is right. Some of the biggest and most profitable companies in the world had humble beginnings in garages and basements.
Mergers and acquisitions are fairly commonplace in Ohio. These two business strategies allow companies to grow by sometimes buying out a competitor or a partner. For the seller, it may also provide the means to retire early and peacefully.
Finding capital for a start-up business can be a challenge, which is why some Ohio entrepreneurs accept the help of an angel investor. The capital angel investors provide can help business owners purchase the needed inventory and assets to get their business going, but in some cases an angel investor might burden the business owner with demands that the owner might not have bargained for. So before you take on an angel investor, it is crucial to consider what an angel investor might ask of you.