If you have a business, or are considering starting one, you need to think of the legal implications of doing so. When you are a small business owner, you are opening yourself up to certain liabilities that most likely did not exist before you were your own boss.
One other issue that you have to consider when you are an entrepreneur is taxes. Business taxes are handled much differently than personal taxes, so you have to be aware of what is going on with your business taxes. Consulting with an accountant is a great idea when it comes to business taxes.
While you most likely can operate your business as a sole proprietor, this is not the best option in most cases. There are huge liability and tax reasons why you should not be a sole proprietor. Getting professional advice about these matters is highly recommended.
What business structure should the average small business owner use? First off, the smart entrepreneur will seek professional guidance in determining which structure will offer them the best personal liability protection and allow them to take best advantage of tax laws.
A very common business entity, and most likely the best choice for most small business owners, is an LLC. A limited liability company (LLC) gives you personal liability protection, assuming it is set up correctly, and you totally separate your business and personal activities. Also with an LLC, you can choose how you should be taxed.
Forming an LLC is very easy, with one of the more expensive options being paying a lawyer to form your LLC. A much less expensive option is to use an online LLC formation service, which lets you get a properly set up LLC with prices starting at under $200.
While there are other business structures you could use for your business, an LLC is one of the simplest and works well for most entrepreneurs. An LLC strikes the right balance between ease of use and personal liability protections, so it is generally a great choice.
Before deciding that an LLC is the right choice for your situation, you need to talk to a professional. It is extremely important that whatever business structure you choose is set up properly so that you can benefit from its liability protection and potential tax benefits. - 16069
One other issue that you have to consider when you are an entrepreneur is taxes. Business taxes are handled much differently than personal taxes, so you have to be aware of what is going on with your business taxes. Consulting with an accountant is a great idea when it comes to business taxes.
While you most likely can operate your business as a sole proprietor, this is not the best option in most cases. There are huge liability and tax reasons why you should not be a sole proprietor. Getting professional advice about these matters is highly recommended.
What business structure should the average small business owner use? First off, the smart entrepreneur will seek professional guidance in determining which structure will offer them the best personal liability protection and allow them to take best advantage of tax laws.
A very common business entity, and most likely the best choice for most small business owners, is an LLC. A limited liability company (LLC) gives you personal liability protection, assuming it is set up correctly, and you totally separate your business and personal activities. Also with an LLC, you can choose how you should be taxed.
Forming an LLC is very easy, with one of the more expensive options being paying a lawyer to form your LLC. A much less expensive option is to use an online LLC formation service, which lets you get a properly set up LLC with prices starting at under $200.
While there are other business structures you could use for your business, an LLC is one of the simplest and works well for most entrepreneurs. An LLC strikes the right balance between ease of use and personal liability protections, so it is generally a great choice.
Before deciding that an LLC is the right choice for your situation, you need to talk to a professional. It is extremely important that whatever business structure you choose is set up properly so that you can benefit from its liability protection and potential tax benefits. - 16069
About the Author:
Caressa Waechter supports small business and truly feels most small businesses can benefit from LLC corporations for their business. Learn more about the benefits of LLC incorporation by visiting her website.
