Congratulations on deciding to start your own business! It can be very overwhelming when deciding on how your taxes will be paid and other major factors such as the business structure. Our firm has broken down the most common types of business structures to help get you started.
Partnership- This structure is chosen when you and another person decide to share the responsibility for the business together. When a business is a partnership, the business itself does not get taxed. Each partner has to report any losses or profits on their own income tax return.
Sole Proprietorship- Commonly chosen due to the fact that one person will be operating the business. This person is responsible for any debts the business may encounter.
Corporation- The business itself can be held accountable for liability and is taxed normally. However, the main benefit of electing a corporate status is removing all personal liability from the equation.
Limited Liability Company (LLC)- Many people choose this structure type because the owners are not personally held accountable for the company’s debt or liabilities. The company is not taxed, just like a partnership.
Take the next step towards your dream of opening your own business by letting us be your business formation lawyer. Schedule a time for a one-on-one consultation with one of our attorneys when you call our firm at (708) 979-0614 today.