Choosing the Right Legal Entity Type for Your Business with Parvisor

When starting or operating a business, selecting the appropriate legal entity type is a crucial decision that impacts various aspects of your company, including taxation and management. With Parvisor’s plan creator software, you can easily set your business’s legal formation to ensure accurate planning and informed decision-making.  

How to Set Your Legal Formation 

Within the Parvisor Plan software, you can specify the type of Business Formation in the Company Profile section of your subscription home page. Choose from the following options: 

None: If your business has not yet established a legal entity type or you are unsure, select “None” to leave it open for future changes. 

Sole Proprietorship: Ideal for single owners, this simple structure means you and your business are considered one entity for tax purposes. 

Limited Liability Company (LLC): Provides personal liability protection and allows for flexible taxation options. 

Corporation: Offers strong liability protection and the ability to sell shares, making it suitable for larger businesses. 

Partnership: Designed for businesses with multiple owners, it allows shared responsibilities and profits. 

NonProfit: Although not directly available in the dropdown menu, Parvisor offers the flexibility to create strategic plans for nonprofit organizations. Simply select “None” and set the tax percentage to ‘0%’ to create and manage your nonprofit’s financial forecast. 

How the Legal Formation is Integrated in Your Plan 

Parvisor’s interview process ensures your selected legal formation type is included and managed throughout your business plan. The interactive interview generates, updates, and manages text for each section of your plan, saving you time and effort. This feature is accessible at all subscription levels, making your planning process efficient and accurate. 

Additionally, a one-page cover sheet breakdown of your company includes the Legal Formation information, providing a clear snapshot of your business at a glance. 

Why Choosing the Right Legal Formation Matters 

Selecting the appropriate legal entity type significantly impacts how your business is taxed and managed. To make the best choice for your company, consider consulting a business attorney and an accountant. They can guide you through the options, paperwork process, and costs involved in incorporating your business. 

Plans for Nonprofit Organizations 

While Parvisor’s plan creator does not have a dedicated setting for “Non-Profits” in the Legal Formation dropdown menu, you can adapt the app’s functionality for strategic planning. Nonprofits can create traditional plans with a focus on their organization’s mission, while using Parvisor’s financial forecast framework by setting the tax percentage to ‘0%’. 

Parvisor offers multiple plans to help keep your growth accelerated and profitable. Whether it is an HR Plan, a Marketing Plan or a Business Plan, we have you covered. And these plans can be integrated to maximize acceleration. Ideation? Business Ideas? It is all here for you.  To get started, click here.