Posts Tagged ‘entity’
What important issues should be considered in deciding on the proper entity for your business?
The two most important considerations for most small businesses are 1) liability protection and 2) tax considerations. Textbooks sometimes cite other issues such as perpetuation of the entity, continuity, ability to raise capital, etc. However, in my experience, these are not important considerations for most small businesses. Liability Protection. With respect to liability protection, corporations » Continue…
What is the basic difference between a C corporation and an S corporation?
The difference between a regular C corporation and an S corporation is in the way taxes are reported and paid. Both types of corporations are initially formed as a regular C corporation. Both are subject to the same state corporation laws with respect to their organization, operation and the liability of shareholders (S corporations provide » Continue…
In what form or entity do most small business owners choose to operate?
Some new or start-up businesses operate as sole proprietorships due to the ease and low cost of starting up. However, if the business owner desires to operate in one of the legal forms or entities, the most common and practical choices include the partnership, regular or C corporation, S corporation or limited liability company (LLC). » Continue…
