Business Plans

1.  What is a “business plan” and do I need one?

A business plan is a structured document consisting of a sales pitch for your new or expanding business.  The business plan is used primarily when attempting to obtain formal financing.  Most small businesses will not need a business plan since either financing is not required or is being obtained other than by bank loans.

A business plan is NOT a planning document and does NOT take the place of a strategic plan for your business.

2.  Do I need to incorporate or form a business entity?  Does a sole proprietorship work better if my business consists of only me?

A business entity protects your personal assets from liability for claims against your business.  Without the protection of a business entity, it is possible your personal assets could be used to satisfy a judgment related to your business activities.  With a business entity in place, the entity serves to shield your personal assets from claims against your business.  Sole proprietors do not receive limited liability protection for their personal assets from their business form.