- What property, equipment or other assets will be used by the business?
- Will property, equipment and other business assets be purchased or will they be contributed to the new business by the owners?
- How much money will each owner contribute to the new business venture?
- Will the business operate at a profit or loss during the first few years? (be accurate)
- What is the amount of estimated gross income of the business for the first few years?
- How much net income will be retained or reinvested by the business and how much will be distributed to the business owners?
- What are the individual income tax brackets of the business owners?
- What are the desired salaries of any owner/employees?
- Do the business owners plan to obtain their health insurance and other fringe benefits of employment from the business? (phones, automobiles, retirement plans, life insurance)
- Will the new business have any employees other than owner/employees?
Each of these questions should be carefully considered before deciding on the form or type of a new business venture. Accurate financial projections are essential to this analysis.