Season One, Episode Seven– An introduction to some of the main forms of for-profit business entities, a comparison of their similarities and differences, and the five main considerations entrepreneurs should keep in mind when choosing an entity.
Episode Description: Edward Kim (Fordham Law ‘19) and Geoffrey Kelly (Fordham Law ‘18) join to discuss considerations for choosing and forming a for-profit business entity. Topics include financing, ownership and operations, personal liability, taxes, and the formation process. Ed and Geoff share a step-by-step example of a new business entity formation to assist entrepreneurs in this process.
- [:31] Edward Kim and Geoffrey Kelly introduce themselves as Fordham Law students under the supervision of Professor Bernice Grant.
- [1:45] Main considerations when choosing an entity include financing, ownership and operations, personal liability, taxes, and the formation process.
- [2:24] What every new entrepreneur needs to consider regarding how financing impacts choosing a business form.
- [6:42] Ownership and operations considerations for an LLC, partnership, and C- and S- Corporation.
- [11:25] The main differences and benefits of a Benefit Corporation versus a C- or S-Corporation. Clarification of how Benefit Corporations differ from Certified B-Corps.
- [14:43] Ways entrepreneurs can protect themselves from liability, requirements to maintain limited liability protection, and importance of business insurance.
- [17:24] Tax requirements and considerations for each entity type.
- [20:03] The formation process, associated costs, and which state to form your business in.
- [22:08] A step-by-step hypothetical example of a new business entity formation.
- [25:36] Key takeaways and considerations for entrepreneurs when faced with a new business entity formation.
Mentioned in This Episode:
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Startup LAWnchpad is a new podcast that helps bridge the gap between entrepreneurs and their legal needs. This podcast is a series of virtual legal workshops that will educate entrepreneurs about legal issues they commonly face as they develop, launch and grow their business.