When you decide to start your own business, or become an entrepreneur, you need to be aware of the legal liability implications of doing so. There are potentially greater legal liabilities you are subjected to as a small business owner that you did not have to worry about before you owned a business.
Business taxes are another issue you need to consider when you are a small business owner. Since business taxes are handled much differently than your personal taxes, you need to have a handle on your business tax situation. Any thing related to your business taxes is best run by an accountant, so make sure you have one.
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.
Probably one of the best business structures to choose as an entrepreneur is a Limited Liability Company, or LLC. With a properly set up Limited Liability Company, you get personal liability protection because you are separating your business and personal activities. Also, when you choose to form an LLC, you get to choose how you are to be taxed, which can have some tremendous advantages.
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.
Talk to a professional to see if LLC incorporation is the right structure for your particular situation. At the very least, you need to take some action to make sure that your company is separated from you, so you limit your potential liabilities and take advantage of the tax benefits afforded to small businesses. - 15485
Business taxes are another issue you need to consider when you are a small business owner. Since business taxes are handled much differently than your personal taxes, you need to have a handle on your business tax situation. Any thing related to your business taxes is best run by an accountant, so make sure you have one.
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.
Probably one of the best business structures to choose as an entrepreneur is a Limited Liability Company, or LLC. With a properly set up Limited Liability Company, you get personal liability protection because you are separating your business and personal activities. Also, when you choose to form an LLC, you get to choose how you are to be taxed, which can have some tremendous advantages.
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.
Talk to a professional to see if LLC incorporation is the right structure for your particular situation. At the very least, you need to take some action to make sure that your company is separated from you, so you limit your potential liabilities and take advantage of the tax benefits afforded to small businesses. - 15485
About the Author:
Author Caressa Waechter knows first hand how small business owners receive benefit from incorporation LLC. Learn about how you receive benefit from LLC formation by visiting her website.
