Valueforth Consulting

How to Choose the Right Business Structure

Choosing the right legal structure is an important part of running a successful business. Whether you're just starting out or your business is growing, it's crucial to understand the various legal business structures and the associated benefits of each structure.

The choice of the business entity or business structure you make will determine your business finances, taxes, credit risk exposure, and your long-term strategic plans.

For simplicity, the four major types of business structures are discussed below:

Sole proprietorship

An unincorporated business that is owned by one person who reports business profits on his or her individual tax return. A sole proprietorship is the simplest business structure and is straightforward to start.

Partnership

An unincorporated business owned by multiple owners, either people or other businesses. Profits are divided among its owners and reported on their tax returns. Common partnership types include general partnerships, limited partnerships, limited liability partnerships (LLPs) and limited liability limited partnerships (LLLPs).

Limited Liability Company (LLC/LTD).

An LLC or LTD is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 50, and restricts shareholders from publicly trading shares.

Public Company

A public limited company is a business that is managed by directors and owned by shareholders. A public limited company can offer shares to the public.

Switching business structures is possible, but it's best to decide early on which one you'll need for the next few years. It can get complicated — not to mention pricey, in terms of legal fees — to change structures, and the effort could distract from running your business.

Best Practices for Effective Remote Working

Remote work is no longer new to the workforce in the various industries that were mostly affected by the last Covid-19 Pandemic. In fact, recent studies have shown also an increase in the number of professionals who now prefer to work from home.

The obvious benefits of remote work policy for both the employees and the employers may include greater flexibility in work schedule, improved work-life balance, higher motivation and productivity, and reduced overhead cost for the employer.

As an employee, there are however basic practices that will help you to become more effective with working remotely. Let us consider a few below:

-Create boundaries between work and life

Try first to create a workspace at home where you put your laptop and other work devices necessary for your official tasks daily. Working from home can blur the lines between your work and personal life. So avoid a burnout by separating these two worlds and switch off after your working day ends.

- Manage your time well

Work with a time planner to effectively allot and manage time on every task. Estimate how long each task is going to take and set for yourself realistic targets.

-Prioritize clear communication and regular check-ins
When it comes to remote work, communication is never too much. So, it is essential to use relevant work tools (project management software and collaborative communication tools) that would facilitate effective communication with your team members and colleagues since physical interactions and collaborations are impossible.

Giving priority to this frequent, clear communication keeps everyone aligned on tasks and goals while helping to create stronger personal relationships across remote teams. This builds trust and boosts employee engagement.

-Be accountable

Show yourself to be accountable while working at home. A good idea for this is for each team member to share what they've achieved over the previous week and what their plans are for the week ahead. That way, you can see what others are working on and what they're responsible for.

-Exercise yourself

Take a regular break to exercise yourself while working remotely. Being sedentary for long periods is not good for your health. Physical activities discharge chemicals that help relieve stress and make a person feel more relaxed. Exercise helps you deal with work fatigue and reduces the risk of depression, a hazard associated with the loneliness and social isolation linked to working from home.