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How to Put Personal Money into Your Startup In 6 Steps

The Startup Magazine

A limited liability company status, for instance, will protect you from your business’s legal hurdles and their costs too. You, consequently, need to ensure that the money you have put into your trading pursuit is recorded either as a loan to the startup or as equity. 2. Set up a legal entity for your business.

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Choice of Entity: LLC vs. Corporation

Gust

The appropriate form of entity can depend on numerous factors, including the nature of the business, its intended ownership and management structures, the need to raise equity capital, the desired tax treatment of income and losses and the importance of limiting the personal liability of the business’s owners.

LLC 91
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Debt Or Equity To Fund Your Start-up: Which Is Better?

YoungUpstarts

Loan financing and equity investment are two common methods of funding a new business start-up, assuming you do not have the capital on your own. However, if you would rather share the risk, mitigate debt obligations and bring in top-level experts, invite equity investors. With equity investment, you do not have to repay the money.

Equity 176
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Even Social Entrepreneurs Need Profit to Meet Goals

Startup Professionals Musings

For comparison, I was able to set up a simple for-profit Limited Liability Company (LLC) in a month for less than $100. No equity investors for a non-profit. Obviously all founders wants to minimize their taxes, yet the initial setup for non-profits is bureaucratic, takes up to two years of time, and costs thousands.

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How To Start A Business The Right Way

The Startup Magazine

You can search for co-founders who will contribute with capital, or skills, and share profits and equity with them. The Limited Liability Company (LLC) is a business structure permitted under state statute. If you let ego get in the way and overestimate your skill and talent level, you will kill your own dreams. .

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How To Maximize A Real Estate Investment

YoungUpstarts

The best way to protect your assets is with a holding real estate investment, such as a limited liability company or limited partnership. Consider an Equity Loan. A property’s equity commonly increases as an owner pays down a mortgage. Find a Real Estate Deal.

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What to Do If Your Accountant Makes an Error

Up and Running

Choice of entity (C corporation, S corporation, or a limited liability company ) may affect how the company’s earnings will be taxed and how your assets are protected. Once your business is up and running, there are numerous issues that you may elect to have an accountant handle or advise you on.