Advise on a business idea and Planning

[Irvin220]

I currently in the process of creating a business plan for a new type of bar. I am looking to provide a combination of your every day billiard hall along with Internet capability.
A couple of questions to start with.
1) What form of business ownership should I get and why?
a. Sole Proprietorships
b. Corporation (Limited Liability Company - LLC)

2) What is average for lease agreements?
(Like who handle build out, permits, demolition of existing walls, plumbing, fixtures, etc..)

[keithd]

Irvin,

The answer to question one depends on several factors, including how the company is being formed, by how many individuals, and whether or not there will be investors who are not involved in running the business. I can tell you that you would never start a bar as a sole proprietorship for liability reasons, but other than that you'll have to do some legwork to research the options that fit your particular situation, and probably eventually consult a lawyer.

With regard to question number two: Again, this depends on your situation. Generally you'll be responsible for all work on a location, renovation, electrical, plumbing, etc. although it may be negotiated into your contract that you are given a renovation allowance or rent relief by the current owner if they believe you will truly be adding value to their property. Lease terms usually start at about 3-5 years, and one or two optional renewal periods after the initial lease is up is pretty normal.

Sounds like you need to hit the library and do some reading up on these topics, but I hope this helps out some.

GL
Keith

[G-Dog]

Take an econimics class at a local community college. May sound like a waste of time but you get a lot of info about corp structures and how economics works.

Find a mentor that is in the business. This may be a competitor in another area or one of your old drinking buddies. I found the alliances I've created through the Chamber and through sitting on a bar-stool made for interesting contacts.

Hope this helps.

[Milk]

an LLC. The "limited liability" plays a crucial role in this business. You don't want to Incorporate, or you will have to use an attorney for any Suits brought against the Corporation. There's an even better way to set up a Nightclub. You'll have to email me for that. Milk@tampabay.rr.com

[wygk]

Both offer personal liability protection if properly set up.

The tax treatment is generally different, and varies from state to state. Some states, such as California, have a relatively high corporate tax which you can avoid by organizing as an LLC.

However, you should really talk to your accountant to determine which would be best for your specific situation.

As has been stated about, avoid a sole proprietorship at all costs.

There are several resources for basic business advice such as this. Check your local community colleges to see if they offer courses on starting and running a business. Also, check out SCORE (http://www.score.org). It's an organization of retired businesspeople who provide business advice.