Consider establishing a Sole Proprietorship
Sole Proprietorships:
- Are easy to start up; with low or no start-up costs;
- Have no formation and reporting requirements;
BUT:
- There is no limited liability for the individual; individual is responsible for the debts and obligations of the business;
- Limited to a single owner;
- Sole Proprietorship is not suitable for raising outside capital.
Case Study: Soledad Prosepina (Fictional)
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Soledad Prosepina owns and operates a sole proprietorship that offers sustainable design consulting services. She specializes in advising on environmentally-sensitive structures and sustainable solutions for the built environment. She sees overall energy and environmental performance as a core goal and attempts to integrate sustainable design principles and strategies into all aspects of a project. Her mission is to help clients identify new sources of business value while benefiting the environment and the communities in which these developments are located.
Next steps
Now that you have an overview of what structures may be most suitable for your social venture, you should seek legal advice to ensure the structure meets all your organization’s needs.
TrustLaw, the Thomson Reuters Foundation global pro bono legal program, connects social enterprises with leading law firms to provide free legal assistance on issues such as a structuring. In the US alone, TrustLaw supports over 175 social enterprises with free legal assistance.
Apply to join TrustLaw to request free legal advice for your social venture.