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Business Corporations Question?
My father and I have started our own small business. Its home based and we are serious. Should I start my own corporation? If I am not mistaken, there are five different business structures; Corporation Incorporation L.L.C S-Corp Sole Proprietary Which business structure would be the best for my business? I would like to start a corporation for tax deductions. Please list as many advantages and disadvantages. It would be a great help if you could list your source for me to visit and do a little investigation for myself. Serious answers only please and many thanks in advance to all whom answer.
7 months ago - 3 answers
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Sole Proprietor: One person, Advantage: Easy to start, don't have to file to start, only pay taxes once. Disadvantage: If person is out of town, business is closed, Partnership: Two or more People(Also in the form of LLP for limited Liability). Fairly easy to start, more continuity than a SP, only pay taxes once. Can bring in partners for investment and to add talents. Disadvantage: If partners don't get together, business will suffer. Corporation(Incorporation is just the forming of a corporation). These can be in the form of a C-Corp(standard corporation) S-Corp(special rules and filing rules apply), 501-3C(Non and Not for profit Corporations), and LLC(Limited Liability Company). Each of these have unique features. C-Corps and most Corp's are difficult to form and maintain(Monthly taxes are required to be filed in most states), LLCs are nice because they let you avoid the liability, and lets most of the partners avoid double taxation. The difference between the LLP and LLC is that LLC's are more common for small businesses, whereas LLP's are more common for professional businesses.
by Christiaan
7 months ago
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Other Answers
Chances are, at your level you want to go with an LLC. This means you still get the ease of a DBA or sole-proprietorship, but with no personal liability, should something go terribly wrong. GOOD LUCK!!! MAKE $$$!!!
by eine kleine nukedmusik- 7 months ago
Please call me for information about your corp set up. I help people set up their corps. 760-724-6779. Bob
by Bob- 7 months ago