Contact a Construction Lawyer when Starting a Construction Business
Video Transcribed: Greetings, Tulsa Construction Lawyer Brian Carter here with tulsaconstructionlawyer.com. This video is in regard to business formation and primarily is targeted towards folks who are either trying to form a construction business or may be thinking about expanding or reorganizing their business practices.
In Oklahoma there’s a handful of typical business structures that can be utilized. Everything from the sole proprietorship up to an LLC. Many of these forms have their advantages and disadvantages and I’d like to just go through each one of a handful of these real quickly, to kind of let everyone know and give them an idea of what might work best for them.
Sole proprietorship is essentially an individual, it’s the most common form of business. They’re simple to operate. Management is flexible because you are the boss, the owner. There are fewer legal controls and it does not require to be registered with the secretary of state.
However, under a sole proprietorship you are personally liable for your business and that, depending on the scope of your business, could be problematic if something ever comes up in the future, as far as a claim, or who knows, the possibilities are endless.
Another form of partnership is a general partnership, which is essentially a partnership between two people, and it is the similar properties as a sole proprietorship. It does not have to be registered by the state, but it is also creates liability for both of the partners in their personal capacity.