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International Society of Arboriculture
Arboriculture & Urban Forestry (AUF) May 1987, 13 (5) 138; DOI: https://doi.org/10.48044/joa.1987.13.5.138
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Calsin, J. B. Jr. 1986. Should you incorporate? Grounds Maintenance 21 (6): 84-86.

Have you evaluated the legal structure of your firm as thoroughly as you evaluate the purchase of a vehicle or irrigation unit? Have you investigated the pros and cons of various types of business structures? Is it time to consider changing from one type of legal framework to another? Is a lawyer necessary? In business it is important to know what type of business you have and what laws govern its operation. Answering these questions and incorporating the answers into the overall operating strategy will make you better able to avoid legal pitfalls, react quickly to changes, or raise additional money for expansion or equipment purchase. The sole proprietorship is owned and operated by one person operating under his or her own name or a company name. The partnership is a more involved form of business structure. Any number of people may enter into the partnership, but it must be at least two. The corporation is the third type of business. Unlike the other two types of legal structures, the corporation has a unique feature: it is considered to be a human being doing business. Although it is the most complex form of the legal entities discussed here, you do not have to be as big as Toro to incorporate. Many states allow one-person corporations. The pros and cons of three types of legal structures of a business are listed in the accompanying chart. Weigh the advantages and disadvantages of each.

  • © 1987, International Society of Arboriculture. All rights reserved.
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Arboriculture & Urban Forestry (AUF)
Vol. 13, Issue 5
May 1987
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