When planning your business structure you have to carefully weigh your options and present the one that works best for you. There is no set way to organize a business structure, and how you choose to run a company will be dependent on your personality and the mission of your business.
While there is no set business structure that works for everyone, there is a rule for deciding on the right way to run a company: ask for help from a professional. You need to know your options when it comes to types of business structures, but you don’t have to make the decision by yourself. Don’t expect to know everything about business structures, and don’t be afraid to ask for expert advice.
The following are types of business structures you can use to organize your company: sole proprietorship; partnership and corporation.
This business structure is marked by one owner and involves no separation between business and personal responsibility.
A partnership involves two or more owners of the company.
A corporation means your business is legally separate from the owner and has three types: S Corporation; C Corporation or LLC.
The corporation is the most commonly chosen business structure because there are liability advantages, but also because there is a certain amount of prestige and credibility in the marketplace for established corporations. Regardless of what type of business structure you choose, you need to consult your accountant to find out what makes sense financially for your company. The accountant will help analyze the different business structures based on both operations and taxes. Since the tax laws are complicated, you will need an accountant’s and even a lawyer’s expertise to point you in the right direction.
Your chosen business structure will affect personal and business issues for many years, so you have to make an investment both financially and time-wise to get the best support. Consult professionals that know about small businesses and tax laws.
Blogged By: Computer Consulting Kit