Expert Advice on Business Ownership Options and Legal Structures in Hazelwood

As we continue our series on , we're back this week with part 2 of a discussion on different types of business ownership options and tips on how to determine the legal structure of your business with expert advice.

See Part 1:

Advice from the Experts

“Questions on how to incorporate your specific business would be best answered by someone such as a CPA or attorney,” said David Cox, the City of Hazelwood’s economic developer, adding that he recommends , who has an office on Howdershell in Hazelwood.

FranNet owner Chris Coleman said that each type of business ownership has its pros and cons.

“If you don’t want to reinvent the wheel and are willing to follow a system, a franchise may be something to consider,” Coleman said. “If partnering with a franchise is not your cup of tea, you may want to consider starting from scratch or looking into existing businesses. “

Coleman added that if you have the capital and would like a business that has “legs” to it already, purchasing an existing business might be an ideal option. 

“If you are looking for total control of the business, don’t mind going it alone, and are not interested in buying out an existing business, starting from scratch may be your best option,” he said.

said one of his companies, , was established initially in 1993 as a sole ownership. It later developed later into a LLC.  

“This has tax and legal consequences related to how you are taxed as well as liability concerns,” Shoaf said. “Our firm talks to you about each of the options if you are just getting started and will refer you to a trusted attorney for the final consultation.”

He said that if you’re struggling to decide which type of business ownership to choose, another local resource is attorney Jesse A. Granneman.

“He is a local attorney who has helped several business owners and can help you as well,” Shoaf said.

Coleman said that the Secretary of State’s website has good information that can help you get a feel for how you should legally structure your business.

“Getting professional CPAs or attorneys n your corner who have experience in the area you are looking will help you get it right from the start,” he said.

Shoaf advises his clients to think about where they want to be in the next five to 10 years and to consider their financial and managerial options with this perspective in mind.

Sole proprietorship and Limited Liability Corporations are two of the most simple to establish and maintain, he said.

He added that the type of business organization you choose will also affect your insurance needs.

“Make sure you contact a trusted insurance broker that can help customize your policy needs,” Shoaf said.  “This can save you money, time and let you sleep better at night.”

He said his companies use broker Shawn Waked at Practical Insurance Solutions.

“They have helped us with very unique insurance needs across four businesses,” Shoaf said.  “As with everything, you should have a second opinion on your insurance cost.”

Meet the Experts

Cox is the economic developer for the . His office offers support for local businesses, including help with marketing and liaison with local developers, as well as providing information to residents and other parties who are interested in the city’s economy. He’s available Monday through Friday from 8 a.m. to 4:30 p.m.

Coleman owns a St. Louis-based franchise consulting firm and does a lot of business in the Hazelwood area, he said. His company, FranNet, helps business owners choose and pursue franchise ownerships, among other things, and serves Hazelwood business owners, as well as many others in the greater St. Louis area.

Shoaf owns several businesses, including Safety Training and Consultations International (STCI), a leading global consulting firm, and , a business dedicated to helping small businesses navigate the way to success. Both companies serve Hazelwood-area businesses.

Have you always dreamed of starting your own business? Subscribe to our daily newsletter so you won’t miss a single part of this ongoing series! Next week, we’ll share tips and resources for finding free and low-cost classes and business training for business owners.