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How to Protect Your Small Business Ideas With Business Structures

So, you have a great idea for a business. You’ve thought up a few profitable ways to turn that idea into reality, and now you’re looking around online to see which business structure will fit your needs best. The most common choices are sole proprietorships, LLCs and corporations. Each has its advantages and disadvantages, but there’s a much better option: a mixed entity. This is a business structure that’s unique because it combines the benefits of both corporations and shubhodeep prasanta das sole proprietorships. The hybrid nature of the mixed entity allows you to take advantage of the best qualities of each while avoiding some of the drawbacks.

Here are ways to protect your small business ideas with business structures:

Keep it Simple

With a mixed entity, the main focus is on protecting the asset of the company. You won’t need all the paperwork associated with either a sole proprietorship or an LLC. So, with a mix of both types of business structures, it’s easy to see the benefits. For example, sole proprietorships are great for those with little or no experience in operating companies. They provide a limited liability shield from lawsuits by third parties and the ability to both incorporate and form an LLC for tax purposes. However, depending on your skill level and the scope of your business, you may be tempted to go overboard with complexity.

By going with a mixed entity, you can keep matters simple by combining the benefits of each type.

More Flexibility

One of the big advantages to a mixed entity is that it gives you more flexibility when it comes to your business structure. By combining a sole proprietorship with a corporation, you can make changes at any time. Alternatively, if you go with an LLC, once the entity is created and its owners are named, there’s no easy way to change the manner in which it operates. The same holds true for corporations. Unlike sole proprietorships and LLCs, there is no way to alter the formation of a corporation once it’s formed. So, a mixed entity is great for business people who like to experiment with new ideas and modifications.