There are many reasons to form a legal business entity through which you operate your aquaculture business, including the ability to open bank accounts under the business; purchase, own, and register equipment through the business; avoid certain types of liability; and qualify for certain loans. If you choose not to create a business entity, everything will be in your own name.
If you choose to create a legal business entity, you will need to decide what kind of business entity you want to create. There are several kinds of business structures to choose between, all of which have different federal tax implications. This process involves paperwork and it is important to speak with an accountant and lawyer before choosing your business structure. If you are operating a legal business entity in Virginia, you must register with the state.