Selecting the right business entity from the beginning helps ensure smooth operation and growth of your business.
There are several basic business entities to choose from:
- Sole Proprietorships
- Corporations (S-Corporations and C-Corporations
- Limited Liability Companies
There are many issues to consider when deciding which entity is best for your situation, including
- Who are the owners?
- Will the owners be one person, a group of people, or an existing business entity?
- Who will operate or manage the business?
- Will it be the owners or someone else?
- What is the purpose of the business?
- How should taxes be paid?
- Do you want the income to “pass-through” and be taxed at the individual owners’ level, or should the business pay taxes itself?
- Who will be liable for the business’ debts and legal issues?
- What can be done to protect owner or investor assets from the business’ liabilities?
- What are future plans or goals for the business?
- Will it be likely to expand?
- Will you be looking for a buyer?
Some purposes fit especially well to particular entities, while others are required to choose or prohibited from choosing certain entity forms.
King Business and Patent Law can help you determine which type of business entity is best for your current needs and future plans.
We can also help you change entity structure for an existing business, such as moving from a sole proprietorship to an LLC.
The post How Do I Know What Type of Business Entity to Choose? appeared first on King Business and Patent Law.