Are you starting a business or thinking about buying one?
Then you’ll have to consider which form of business entity you’re going to establish.
- A sole proprietorship
- A single-member LLC
- An S corporation
- A C corporation
Each form of business has its own advantages and disadvantages which we’ll analyze in our two-part series.
In part one, we’ll examine the sole proprietorship and the single-member LLC options.
Extremely important information is waiting for you when you read my new article titled Tax Tips: Choosing the Right Entity for a Newly Acquired Business (Part 1).
Here’s just some of what you’ll learn:
The sole proprietorship option.
- Why you should consider it first
- Why you may need to buy extra insurance
- Why it’s not a “legal entity”
- Your exposure to unlimited liability
- When it makes sense to use this form of business entity
The single-member LLC option.
- When it can help protect your personal assets
- Why it won’t protect you from professional malpractice acts
- Why it’s generally ignored for federal tax purposes
- Why it avoids a number of serious complications
- Why your LLC must pay certain federal excise taxes and federal employment taxes as if it were a corporation