It isn’t strange to find an enterprise that an owner set up with a lot of zeal but later failed to bloom from isolated challenges they faced. Sometimes such businesses are referred to as lemonade stands.
Their trademark reputation is that they could fade away at any moment, leaving no legacy behind for the entrepreneur. To avoid your business becoming a lemonade stand, here are some excellent tips you could use to restructure your enterprise from the day you set it up.
Detach Intellectual Assets Away from Your Enterprise
At first glance, it might seem like your venture doesn’t have such assets, which couldn’t be further from the truth. Your business’s contact number and website address are the first two pieces of intellectual property you have.
You must obtain a license for these two assets to prevent a sticky situation in future. A competitor could file a lawsuit that would see them taking away your contact information and website, and it would all be legal. This is detrimental, especially if your enterprise was starting to gain a foothold in the market.
Avoid Registering Your Venture as a Sole Proprietorship
Setting up a venture in your own name almost has no value to you. It makes more sense to register it as an operating entity, most likely as an LLC. Establishing it as a sole proprietorship is an indicator that you aren’t interested in turning it into a reputable firm.
It only shows that your interests are in your own financial gain. The disadvantages range from poor tax rates and legal limitations to the inability to sell it off whenever you want to do so.
Taking Up a Trust for Your Venture
It is highly advantageous to set up a trust for your business to shield yourself from any unprecedented challenges that might affect your business. What this does is that other properties you have will not be touched if that happens, therefore limiting everything to the enterprise assets only. A trust acts as a buffer and gives you options when it comes to asset-control.
Whitefish Funding seeks to offer you insights on how best to run your enterprise. Contact us today for more tips on handling your operations.